Published: Thu, February 15, 2018
Business | By Tara Barton

Early Data Suggests Few Taxpayers Reporting Crypto Gains and Losses

Early Data Suggests Few Taxpayers Reporting Crypto Gains and Losses

And what should cryptocurrency traders be aware of when it comes to possible tax consequences?

Over half of the same survey sample claimed to have never reported any crypto gains to the IRS, while under half said that they felt they fully understood how owning digital currencies affected their taxes.

Last year was a big year for Bitcoin as the online currency skyrocketed to almost $20,000 in value. According to early indications from tax firm Credit Karma, however, only a relatively small number of those people are apparently reporting digital currency gains and losses in this year's tax filings. That number falls far short of the 57 percent of Americans polled who said they had cashed in on the investment craze a year ago.

The IRS treats Bitcoin and other cryptocurrencies as property rather than actual currencies.

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"Generally, Americans with more complex tax situations file later in the tax season, especially if they expect that they'll owe money".

High-profile investors have warned fellow investors to comply with IRS rules. Mike Novogratz, a billionaire hedge fund manager always tells the blockchain community, "Listen, the IRS is going to come after people". So the IRS isn't stupid.

Just previous year, the IRS successfully sued Coinbase, a popular cryptocurrency exchange, for access to customer records after less than 1,000 people reported losses or gains from Bitcoin in 2015. The tax man cometh, and with April 17th not too far off, he'll be here before you know it. Have you ever NOT reported them?

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