The IRS can assess back taxes, interest, and penalties for the failure to report Bitcoin Income. The IRS has made Bitcoin tax compliance a priority as part of its Virtual Currency Compliance campaign.
If you’re having tax problems
You may need to amend your tax returns and pay additional taxes, penalties, and interest if you have previously unreported Bitcoin income. If you fail to take action, the IRS may audit your returns as part of its Virtual Currency Compliance campaign.
Virtual currency refers to any digital currency which is only available in an electronic form and not as a physical form of money. Virtual currencies, like Bitcoin, are created by a process known as “mining,” where an individual, using powerful computers, authenticates transactions in what is known as a “blockchain,” or a ledger of digital… Read more »
Cryptocurrency and Taxes From a technical perspective cryptocurrency is very easy to trade. Sign up to an exchange, deposit some fiat currency, and with just a couple of clicks one can become the new owner of some Bitcoin, Ethereum, or another coin that has taken the world of digital investments by storm. But while cryptocurrency… Read more »
What Should You Do if You’ve Already Filed an Inaccurate Return? Less than a month before the 2018 filing deadline, the Service cast a much wider IRS Bitcoin net than the one it used in 2014. This news is particularly unsettling to the estimated 13,000 Coinbase account holders whose information was involuntarily turned over to… Read more »
Will they change Bitcoin Tax Regulations? In terms of Bitcoin tax regulations, the U.S. government moved a step closer to designating the cryptocurrency as cash when Comptroller of the Currency Director Keith Noreika stongly hinted that his office would soon regulate it in the United States. Mr. Noreika made the comments during an event at the… Read more »
The cryptocurrency-tax question may have just gotten a lot murkier, now that Stargroup announced a partnership with DigitalX to roll out up to 2,900 Bitcoin-enabled ATMs in Australia. Currently, there are only sixteen such machines in the entire country, and nearly all of them are one-way devices which only allow users to add Bitcoin shares… Read more »
In April 2014, the IRS declared that Bitcoin was property and not currency and would therefore be subject to the capital gains tax or capital loss deduction. But now may be a good time to examine Internal Revenue Bulletin 2014-16 in depth, given the recent uptick in Bitcoin prices (and that’s putting it mildly), along… Read more »
After a long period of relatively low scrutiny, probably because Bitcoin values were relatively stagnant, the cryptocurrency is now on the Service’s (IRS) radar. Under current “law,” and that is using the term loosely, Bitcoin is probably not reportable on FBAR forms. However, since this declaration comes not from Moses as he descended the mountain,… Read more »
IRS Blinks In Coinstar Row Faced with growing opposition to its Coinstar John Doe summons, the IRS agreed to limit its scope, mostly by limiting the summons to Bitcoin accounts over $20,000. The original summons, which was directed at all crypto currency holders with Coinstar accounts between 2013 and 2015, would have affected over a… Read more »