Note to the currency traders: Tax officers are here


nnnIn 2008, IRS issued a Guide to Encrypting Currency Taxation, which was considered an asset. The general tax applicable to asset transactions was applicable to transactions conducted in virtual currency. And signed a contract with the Bitcoin Transaction Tracking Software Company to use its technology to identify illegal activities to ensure that tax payments are carried out normally. But the current tax returns and pay the business not much.n
nnTranslation: Annie_Xun
nThe total market capitalization of the encrypted currency exceeds $ 150 billion, and traders and investors have accumulated huge gains. This is good news, the bad news is the US Internal Revenue Service (IRS, Internal Revenue Service) tightening measures to ensure tax returns and seizure. And contracted with a software company that provides analysis and tracking of Bitcoin transactions.n
nIn 2014, IRS issued a Guide to Encrypting Currency Taxation, treating it as an asset rather than a currency and a clear position on tax issues. In short, the agency says that the general tariffs applicable to asset transactions apply to transactions conducted in virtual currency.n
nHowever, after the promulgation of the guidelines, only about 800 taxpayers in 2015 reported the profit and loss of Bitcoin. Public reports show that IRS began using the software from 2015, and the IRS stated that the reason for using the software was “evidence that would help identify and acquire money, or conceal the income, engage in tax fraud and other federal offenses.”n
nLast November, IRS issued an anonymous subpoena to one of the largest US exchanges. IRS lawyer said:n
nnAnonymous subpoena is an identifiable organization or group of people, that is, from the December 31, 2013 to December 31, 2015 during the virtual currency exchange business of US taxpayers to IRS Notice 2014-21 terms As the basis for “.n
nnIf you succeed in investing in encrypted money, you must understand the impact of activities on taxation. There is an example in the guide that many people ignore, that is, if you convert the value of the currency to cash, you need to pay taxes. The guide states that the use of value-added currency may also require tax. IRS said that if the value of the asset market for the exchange of virtual currency exceeds the adjusted virtual currency tax base, the taxpayer must also pay taxes.n

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