IRS Lawsuit To Get Crypto Account Holder Information Signals It Is Time For Kraken Crypto Account Holders To Get Taxes In Order forbes.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from forbes.com Daily Mail and Mail on Sunday newspapers.
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Cryptocurrency is treated like any other investment asset for federal income tax purposes and not money. Therefore, taxpayers that sell cryptocurrency for a gain incur taxable capital gains for income tax purposes.
It is likely that a fair amount of cryptocurrency has been sold for gain by U.S. taxpayers without that being reported - either out of ignorance or intentional tax avoidance. Importantly, cryptocurrency transactions are not invisible but are available for review on the blockchain. Some sleuthing may be required to tie a particular transaction to a taxpayer, but this is often not that difficult. Further, cryptocurrency exchanges may be able to identify crypto transactions and tie them to specific persons.
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IRS Operation Hidden Treasure Looks to Do Some Bitcoin Mining of Its Own
On 3/12/21 at 2:10 PM EST
Cryptocurrencies, criticized by some as detached from the real world and floating in the ether, are nevertheless tethered to reality through taxes.
In general, Bitcoin is treated like other appreciating assets, but the cryptocurrency s distinctive attributes create pitfalls for the unwary. As with many taxes, the devil is in the details, Kell Canty, founder of CEO of Verady, developer of the Ledgible CryptoAsset Tax and Accounting platform, told
Newsweek.
Kell Canty, CEO, Verady (Photo Provided). Tax on forks and airdrops where a new asset is simply given to the crypto holder sometimes without their knowledge will have income tax obligations, he said. Some crypto activities such as decentralized finance, staking and others are new with little guidance, support, or reporting.
IRS Launches Operation Hidden Treasure to Target Unreported Crypto Income
The U.S. Internal Revenue Service (IRS) has reportedly launched an operation to target cryptocurrency investors. Dubbed “Operation Hidden Treasure,” the team consists of agents trained in the field of cryptocurrency and transaction tracking.
Damon Rowe, Executive Director at the IRS Office of Fraud Enforcement, unveiled “Operation Hidden Treasure” last week at a Federal Bar Association presentation on combating fraud, Forbes reported. The long-time veteran of the IRS Criminal Investigation division explained that the office has put together a dedicated team of IRS criminal investigation professionals to work on this operation.