As April 17th quickly approaches, many are scrambling to turn in their tax returns on time. Before tax time, many people in the United States rush to find receipts and documentation indicating gains or losses that are entered into yearly tax forms. Unfortunately, the Internal Revenue Service is beginning to see a trend from many early filers that is looking a bit dishonest. It appears that certain tax filers might not be as honest as the IRS suspects in regards to their cryptocurrency endeavors.
The sudden popularity of cryptocurrency has had almost everyone around the world playing catch-up to this new innovation. That being said, the United States government has also had to take time in order to figure out how this new type of currency would be taxed. Shortly thereafter, official rules were put in place regarding all things cryptocurrency for those filing their 2017 taxes. There were specific rules put in place for all types of cryptocurrency dealings including exchanges and sales of these types of currencies.
Cryptocurrency website Bitcoinist reports that early numbers are suggesting that only 0.05% of those filing taxes for 2017 have reported any gains from cryptocurrency. While this type of currency is still extremely new, many feel that this percentage is a shockingly low number.
Industry experts note that many who dabble within the world of cryptocurrency don’t mind taking risks. However, taking the risk of not reporting earnings to the IRS is not advised. In addition to paying steep fines, those not listing their cryptocurrency gains could face jail time. It’s also important to consider that many investors could simply be unaware that cryptocurrency income of any kind is taxable.
To summarize, the IRS recently released statistics showing that a shockingly low amount of people throughout the United States are reporting cryptocurrency earnings. This form of currency has recently excelled in popularity, especially throughout the United States. However, it’s important to realize that this form of currency is taxable. Whether due to people being uninformed or daring to tempt fate, many people are failing to report their gains from cryptocurrency. It’s unknown how this initially low percentage will change as more tax return statistics are reported to the public by the IRS.
Dil Bole Oberoi
