IRS launches the compliance campaign aimed at investors in virtual currency

The IRS has announced new efforts to ensure that investors remain honest.

On July 2, the Large Business and International (LB & I) branch of the Internal Revenue Service (IRS) announced the development of five new compliance campaigns. These campaigns must focus on an assortment of regulations, including those related to the taxation of earnings received from cryptocurrency investment.

A compliance campaign is a way in which IRS addresses those who may not adhere to current tax laws, such as not reporting capital gains from bitcoin operations.

Answers can include increased and targeted audits, but typically the IRS begins by sending the so-called "simplified letters", in which the suspected contributors are advised that the agency is aware

L & # 39; IRS announcement reads:

"These five additional campaigns have been identified through LB & I data analysis and IRS employee suggestions The goal of LB & I is to improve the selection of returns , identifying problems represents a risk of non-compliance and makes the best use of limited resources. "

IRS issued a guide on the taxation of virtual currencies in 2014, when the agency clarified that he considered them real currencies. In 2016, IRS provided a broad call on the popular Coinbase exchange in an effort to find out traders who may not have properly reported profits. One lawsuit resulted in a significant narrowing of the call-up in November 2017 to customer accounts "with at least the equivalent of $ 20,000 in any type of transaction (purchase, sale, dispatch or receipt) in one year during 2013-2015 period

According to Forbes the tax authority stated that in 2016, only 802 taxpayers out of the 132 million who submitted online reported gains related to the cryptocurrency in this latest announcement , IRS explicitly stated: "US persons are subject to worldwide income taxes from all sources including transactions involving virtual currency."

IRS intends to fight this problem through "outreach" and exams ", and is encouraging taxpayers who have not previously reported their cryptographic gains to" correct their profits as soon as possible. "

In the statement, the IRS under also line that "the IRS is not contemplating a voluntary disclosure program specifically for address non-tax compliance involving virtual currency". However, Forbes noted that "many tax professionals expect it to change".

In March, IRS had issued a letter to remind taxpayers of their obligation to report earnings earned by investing in cryptocurrency, and in April, it was reported that cryptocurrency investors in the US United should have been responsible for $ 25 billion in cryptocurrency taxes.

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