Wednesday, April 21, 2021
If you think the IRS will not find out about your cryptocurrency, think again. With Coinbase making its securities debut with a $85 billion valuation on April 14, 2021, and Dogecoin s value increasing 85 percent essentially overnight, the news spotlight will be on bitcoin, Ethereum and other digital currencies for the foreseeable future. However, cryptocurrency has been in the spotlight for the IRS for the past few years and virtual currency continues to be at the forefront of IRS investigations and enforcement priorities.
Do you think the IRS is not watching? See the new question at the top of the Form 1040 individual income tax return. Specifically, page one of Form 1040 asks taxpayers: At any time during 2020, did you receive, sell, send, exchange, to otherwise acquire any financial interest in any virtual currency? An incorrect answer can be seen as evidence of fraudulent intent by the taxpayer, suggesting that the return itself is fraudule
Circle Selects Signature Bank for USDC Integration and Reserve Balances
Companies Forge Tech Partnership to Include Integration of Circle into SignetTM
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BOSTON, April 19, 2021 /PRNewswire/ Circle, a global financial technology firm that provides payments and treasury infrastructure for digital businesses announced today that
Signature Bank (Nasdaq: SBNY), a New York-based, full service commercial bank, will become their leading financial institution to hold billions of dollars in reserve deposits related to USD Coin (USDC), the fastest growing digital dollar in the world.
The two companies also committed to a long-term roadmap that will kick off with the integration of Circle into
More IRS summonses for crypto exchange account holders The recent John Doe summons developments indicate that the IRS is seriously interested in crypto better to report than to be audited. 8736 Total views Expert Take
The United States Internal Revenue Service has been hunting crypto vigorously for more than five years now, and the pace is getting faster. A couple of decades ago, the IRS was after offshore accounts, and that effort was among the most successful in the IRS’ history. Now, it’s crypto the IRS is after, and there’s no suggestion that the IRS intends to fail. The IRS wants crypto tax data in a big way, from asking about crypto on each tax return to its latest Hidden Treasure initiative and more.
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As you might expect during tax season, the Justice Department’s press releases seem particularly focused on tax-related issues these days. At the start of this month, DOJ sent a stern reminder to the public that non-traditional currency users should not expect to escape federal tax law enforcement.
On April 1, the district court for the District of Massachusetts authorized a “John Doe” Summons to a company called Circle Internet Financial Inc. (“Circle”), allowing the IRS to obtain identifying information about U.S. taxpayers and customers of Circle who engaged in cryptocurrency transactions valued at $20,000 or more over the last 4 years (from 2016-2020), as well as their transaction records. The government’s application did not accuse Circle or any of its customers of wrongdoing. Instead, as reported in its announcement, the government argued that cryptocurrency can be difficult to trace and has an “
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