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Looks like U.S based cryptocurrency investors are in trouble this tax year!

Laira Rebecca

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Look like U.S based cryptocurrency investors are in trouble this tax year!
Source: Wikimedia Commons

The US Government has made it mandatory that the Bitcoin and altcoins should be taxed as property. The tax filers are asked to record their profits and losses in the cryptocurrency market. The investors must file tax under Form 8949 as per the new rule.

An American multinational finance company called Credit Karma analyzed the tax reports filed by the American citizens and discovered that the number of Bitcoin investors who reported their gains are extremely low. Credit Karma uses the Form 8949 to analyze these results, hence the tax filers are advised to file the cryptocurrency report under the same document.

The Internal Revenue Service [IRS] of the United States is scrutinizing the profiles of cryptocurrency investors as they have noticed that the Bitcoin exchange platform Coinbase has reported a turnover of more than thousand records to the tax agency. The tax agencies are questioning multiple accounts of citizens who traded above $20,00 during the previous tax years.

Jagjit Chawla, the General Manager of Credit Karma says:

“There’s a good chance that the perceived complexities of reporting cryptocurrency gains are pushing filers to wait until the very last minute.”

According to him, the U.S cryptocurrency investors are taking a risk by not filing their Bitcoin gains and that they should be more cautious while dealing with the Internal Revenue Service.

According to Thomas Lee, the Head of Research at Fundstrat Global Advisors, American citizens owe $25 billion worth taxes to the government.

A US-based cryptocurrency investor says:

“I thought that was part of the decentralization?? I don’t want my tax money to fund another war, another welfare check to someone who doesn’t NEED OR DESERVE it, to pay aid to another foreign country, to fund rebel armies etc. Fix my pothole, landslide, job deprived, hungry, undereducated nation then ill pay your unreasonable 30% capital gains tax.”

Correy, a cryptocurrency enthusiast says:

“There’s a good chance that the perceived complexities of reporting cryptocurrency gains are pushing filers to wait until the very last minute.”

Another American citizen commented on Reddit:

“Most people were under the impression that they would owe taxes on realized gains and not crypto to crypto trades so they held and either owe more than they have left after the crash or refuse to sell at a huge loss just to pay taxes on a loss. I would have been surprised if even 5% of people paid taxes on crypto.”



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Laira is a full-time writer at AMBCrypto. She is a Computer Science graduate and she has about 1-year experience in writing. Her enthusiasm and keen interest in developing her knowledge about blockchain and cryptocurrency led her to be a part of AMBCrypto. She currently does not hold any value in cryptocurrency or its projects.

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