Crypto

The IRS Asks Very Deep Questions Regarding Your Cryptocurrency Activities

Filing taxes related to cryptocurrencies in the US can be a very painstaking endeavor. It now appears that the IRS crypto tax audit letter being sent out to users is a lot more invasive than initially assumed. 

It is no secret that the IRS wants to target cryptocurrency holders.

The IRS Goes All-in on Cryptocurrency Usage

To do so, the agency will ask some very tough questions.

Some of those questions will not go over well with the general public.

As it turns out, the IRS wants to know a lot of things most people would never expect.

The copy of the 2017 tax return is perhaps the least annoying part of it all.

Related Post

Detailed records of virtual currency acquisitions and liquidations are also somewhat easy to come by. 

However, those records must include ATM transactions, cash transactions, and correspondence with counterparties for any of those activities.

Interestingly enough, the IRS also wants to know about airdrop tokens, currencies obtained through hard forks, faucet usage, and tips. 

While this is all-encompassing, it will also create a ton of headaches for American users.

It does not appear that any of the current tax software solutions will be able to check all of these boxes.

It is a very interesting approach by the tax agency, but not necessarily the correct one.

JP Buntinx

JP Buntinx is a FinTech and Bitcoin enthusiast living in Belgium. His passion for finance and technology made him one of the world's leading freelance Bitcoin writers, and he aims to achieve the same level of respect in the FinTech sector.

Share
Published by
JP Buntinx

Recent Posts

The Calculated Collapse of $TG: How a “Utility” Token Was Engineered for a Rug Pull

In the unpredictable world of cryptocurrency, new tokens launch daily, each one a shining beacon…

19 hours ago

Staked Ethereum Hits Record High as Whale Accumulation Signals Bullish Long-Term Sentiment

Once more, Ethereum is commanding the spotlight as fresh figures indicate that the amount of…

19 hours ago

Arbitrum Sees Surge in Protocol Revenue and EIP-7702 Adoption Following ArbOS 40 Upgrade

The ecosystem on Arbitrum keeps flaunting its robust foundations, with a steady incline in the…

19 hours ago

Ethereum Whale Accumulation Surges as Long-Term Confidence Outweighs Short-Term Volatility

Once again, major market players are focusing on Ethereum. The whale activity surrounding the second-largest…

4 days ago

Week in AI: Fartcoin Steals the Spotlight Amid Market Turmoil

It has been a tumultuous week for the artificial intelligence sector in crypto. Sharp valuation…

5 days ago

BSC Foundation Resumes Strategic Accumulation: VIXBT, CAKE, LISTA, and MOOLAH Under Spotlight

Following a brief stint of dormancy, the BSC Foundation is back in action, reestablishing its strategic…

6 days ago