Cryptocurrency has become an incredibly popular way to invest, but the tax side of this virtual coin can be difficult to navigate. The IRS vacillated its stance on cryptocurrency, throughout the years, making it confusing even for the most diligent investors. In March of 2021, the IRS announced Operation Hidden Treasure, this initiative is “focused on taxpayers who omit cryptocurrency income from their tax returns” (Forbes). If you've bought and/or sold cryptocurrency recently, it's important to declare your crypto correctly on your tax forms to avoid fraud and evasion charges. Before we jump into it, if … (1 comments)
For early adopters of Bitcoin, Ethereum and other popular cryptocurrencies, the profit potential has been simply stunning. While there have been some heart stopping moments and frightening ups and downs, the clear long-term trajectory has been upward.
If you are one of those early adopters who profited from the rise in cryptocurrency values, you are probably feeling pretty good about your decision. But your good fortune could soon take a dark turn, one that could leave you in hot water with the IRS.
After many years of taking a hands-off approach to cryptocurrency investments, the IRS is now making up for lost time. … (1 comments)
Until recently, cryptocurrency investors have mostly flown under the radar as far as taxes are concerned. Now those days are coming to an end, and many holders of virtual currency are scrambling to understand what they owe and how their investments may impact their finances.
The IRS has already requested the identities of those who hold substantial amounts of cryptocurrency, and it is only a matter of time until the tax agency broadens its scope. Just as with overseas bank accounts, the days of free riding in the cryptocurrency market are quickly coming to an end.
Operation Hidden Treasure: Cryptocurrency and the IRS
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