US IRS wants to know how and where you got your Bitcoin from

The US Internal Revenue Service (IRS) has long been trying to find the best way to highlight and tax holders of cryptocurrencies. The authority has released a new draft form that aims to provide the necessary information on the acquisition, exchange and sale of bitcoins and other virtual assets.

Do you have bitcoins?

Cryptocurrency taxation has long been one of the hot topics among regulators around the world. Particularly when it comes to the United States, when an investor profits from an increase Bitcoin prices , he is aware of the capital gains and incurs a tax liability that needs to be reported.

On the other hand, if the price falls after the purchase, the investor will suffer a capital loss that will save him money on his tax invoice. However, this still needs to be reported.

The IRS, however, recently introduced a new form which is still a draft.

The form asks directly:

“At any time during the 2019 year, did you receive, sell, send, exchange or otherwise acquire any financial interest in any virtual currency?”

It is unclear whether it will be put into operation, but this shows that the efforts of the revenue service to obtain additional information about the ownership and use of cryptocurrency are growing.

Growing Concerns Against Regulators

A new draft of the form would be expected. According to the new 2019 Annual Criminal Investigation Report , cryptocurrencies pose a serious risk to the financial and tax system. This was expressed by Deputy Jim Lee.

“Cryptocurrencies undermine the financial and tax system. Companies pay employees crypto / receive crypto for goods / services. They do not pay taxes, and legal entities transfer income to offshore exchanges without reporting. "

Moreover, Don Fort stated that there are many cases of cryptocurrency crimes open in the CI department. Presumably, information about this should be made public pretty soon.

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