Residents of the USA were reminded to add income in bitcoins in their tax declarations

Home » FINTECH » Residents of the USA were reminded to add income in bitcoins in their tax declarations
2018-03-24
Residents of the USA were reminded to add income in bitcoins in their tax declarations

Internal Revenue Service of the USA (IRS) reminded taxpayers to add any income in bitcoin and other cryptocurrencies in annual declarations.

In the message published on Friday, March 22, IRS noted that cryptocurrency transactions must be declared, as well as any other types of property.

For the first time, IRS reported about the intention to tax cryptocurrencies in 2014, stated then that profits and losses on operations with digital currencies if the last were used as non-turnaround assets, would be regarded as a capital gain. Salaries, paid to employees in cryptocurrencies also are to be taxed. In the meanwhile, cryptocurrency payments in favor of independent contractors and providers of services have to be brought in the Form 1099.

In the last message, IRS explained its position, stated that cryptocurrency payments had to be displayed in tax declarations.

“The payments made by means of virtual currency are a subject of the information report in the same degree, as any other payments with the use of a property.”

— said in the document.

The department has also noted that taxpayers who didn’t declare properly tax consequences of cryptocurrency transactions could be subjected to the procedure of audit and if it was required, to bear administrative responsibility in the form of penalties. In especially “extreme situations” it can even reach the criminal responsibility for evasion from taxes which assumes up to 5 years of imprisonment and payment of a penalty of $250 000.

Also, the same penalty of $250 000 and 3 years in prison can threaten users who include obviously false data in their tax declarations.

As the department notes, “some taxpayers can test temptation to conceal the income assessed by taxes from IRS”.

 

Tags:, ,
CRYPTOCURRENCIES
  • bitcoinBitcoin$5,164.00
  • ethereumEthereum$167.23
  • rippleXRP$0.334896
  • tetherTether$1.00
  • eosEOS$5.52
  • stellarStellar$0.117162
  • litecoinLitecoin$79.59
  • cardanoCardano$0.083670
  • tronTRON$0.027092
  • moneroMonero$67.03
  • iotaIOTA$0.323535
  • nemNEM$0.067533
  • dashDash$123.89
  • neoNEO$11.33
What is Cryptocurrency? How to Use, the Future of Crypto, the History of Bitcoin
Cryptocurrency market is actively developing and expanding. This relatively new industry is causing a lot of questions and attracting a huge number of investors, businessmen and ordinary people. “What is the future of cryptocurrency?”, “How to choose cryptocurrency exchange?”, “How to sell Bitcoins?” “What about cryptocurrency mining”? Millions of people read cryptocurrency news everyday and […]
2019-04-08 0 47
What is Bitcoin?
The cryptocurrency industry is becoming more and more popular all around the world. Despite the fact that there are more than 1000 different cryptocurrencies and the number keeps growing, cryptocurrency is often associated with Bitcoin. Bitcoin is the first modern cryptocurrency in the world; it attracts thousands of users and investors from different countries. Millions […]
2019-03-20 0 46
Bitcoin, Ethereum, Ripple, Monero, Dash, Tron: major differences and features
Investors see different names of cryptocurrencies and the movement of their courses, but typically don’t even know why the digital coins are so popular. Most of us have already Googled “How to buy Bitcoin” or “How to sell Ethereum”. Cryptocurencies are becoming more and more popular: Bitcoin price is fluctuating and its value is not […]
2019-03-19 0 44
What is Blockchain?
“Giving users easy access to many different kinds of digital assets on the blockchain and, particularly, tokens that are linked to assets in the real world, is crucial to seeing blockchain adoption reach the next level, and I applaud Digix Global’s initiative in being the first of many such projects to successfully launch” – Vitalik […]
2019-03-06 0 42
© 2017–2018