Survey: 46% not reporting crypto profits to IRS
A high percentage of Americans who invested in crypto and profited in the most recent tax year have decided to risk not declaring their earnings according to a survey conducted by TeamBlind.
Using its anonymous workplace community app, TeamBlind spokesperson Annisa Kau says 2600 users who profited from cryptocurrency in 2017 were surveyed and asked if they planned to report their crypto earnings. Fully 46% responded “No”.
The result is somewhat surprising as the survey ran from April 5th through April 12th — at a time when media attention to tax issues relating to cryptocurrency has been high — and investors should be aware that the IRS has successfully taken court action forcing Coinbase to hand over the transaction records of thousands of its customers (Coinbase is the largest crypto exchange in the U.S.)
TeamBlind survey: Will you declare your crypto profits to the IRS this year? 46% say “No”
Since 2014, the IRS has provided guidance on taxation of cryptocurrencies, which it treats as property and the purchase, sale, trade, and mining of crypto are taxable events. This means capital gains applies says tax expert Ines Zemelman — with crypto sales being treated much like stock sales.
According to tax attorney David W. Klasing, it is highly likely that the IRS will become increasingly aggressive in its enforcement activities and, taxpayers who haven’t reported crypto earnings should get out in front of the situation.
“If you had a Coinbase account or otherwise mined, held, traded, or engaged in transactions involving cryptocurrencies during 2014, 2015, or 2016, it is essential to take steps to mitigate the potential consequences.” Klasing says this may include amending past tax returns, filing missed returns, or making voluntary disclosures.
Blind is an anonymous social app and online community for employees — for the most part working in the technology sector.
‘Must ask’ questions for your crypto accountant at tax time
Crypto taxes looming? There’s some Apps for that…
Source: Read Full Article