Bitcoin Buyers Must Report Gains to IRS
As cryptocurrency comes to the forefront with more investors participating, it is important to be aware of the tax issues.
As cryptocurrency comes to the forefront with more investors jumping aboard, it is important to be aware of the tax issues and how to report gains accurately to the Internal Revenue Service (IRS).
According to Node40, a blockchain tech company, only 800 Americans reported their Bitcoin gains from Ys 2013 through 2015.
It is important to abide by the law even as you enjoy your winnings.
Currently there is an ongoing IRS lawsuit against Coinbase; with heightened probes into cryptocurrency tax evasion, it has never been more timely for cryptocurrency users to declare profits.
From a legal perspective, you must be aware of relevant issues and regulations and of the technology out there to assist Bitcoin investors.
It is important to educate investors in important legal pointers and definitions to make sure that, if they have made gains, they have no uncertainties.
1st of all, participants must be aware of the regulations. The IRS has offered guidance on how to apply existing tax principles to transactions using virtual currency in IRS Notice 2014-21. Check it out.
Have a terrific week.