- Authorities find new ways to trace unpaid cryptocurrency tax
- It is a requirement to file a tax return on crypto investments
- The IRS are on the hunt for crypto tax evaders
The IRS, or the Internal Revenue Service, the financial conduct branch of the United States government are alleged to have discovered a new way to catch cryptocurrency tax evaders. It is of course the law to file cryptocurrency tax returns in the United States, as well as in many other countries across the world, including the United Kingdom. Tax should be paid on the profits generated from cryptocurrency investment, in the same way a self employed person or sole trader may file their own tax return too.
According to reports, the IRS are now working with other similar authorities from other international regions, including the UK, Australia, the Netherlands and Canada in order to share their wider experience on cryptocurrency tax and cryptocurrency tax evasion. The aim of this is to make all parties better at detecting criminals, in order to increase the level of tax that is eventually paid on cryptocurrency investments.
We should remember that just last month, the IRS issued new guidelines that refer to cryptocurrency taxation, so really this proves just how intent on catching these criminals the IRS really are:
“Last month the IRS saw amendments to one of the IRS’s taxation reporting documents. Form 1040 now asks if at anytime during 2019 did you receive, sell, send, exchanged or otherwise acquire any financial interest in any virtual currency. The US tax authority also issued further guidance on how it expects cryptocurrency users to report their tax. The previous lack of clarity led to great confusion and likely contributed to the overall lack of tax reporting that now concerns the IRS.”
With this in mind and with the revelation that the IRS are now working closely with other authorities in the UK, Australia, Canada and the Netherlands, we can conclude that through sharing data and experience, criminals and tax evaders within the cryptocurrency markets are going to find it much harder to hide. If you’re unsure about what tax you owe on your investments, you should contact your own national financial service, such as the IRS in the United States or even the Financial Conduct Authority in the UK to ensure that you are up to date with payments to make sure you’re not accidentally breaking the law.
Robert Johnson , 2019-11-11 16:00:00 ,