Cryptocurrency Taxation and Reporting Requirements

Last Update: November 06, 2019

If you are subject to the U.S. Internal Revenue Service regulations and use or invest in cryptocurrency, the IRS is looking for you.

Indications are very few taxpayers are aware of and are reporting cryptocurrency transactions correctly. And worse yet, out of compliance with regulations.

The IRS recently released Revenue Ruling 2019-24 spelled out the conditions under which transactions of virtual currency may be taxable.

“Transactions” include buying, trading, receiving, selling, gifting or exchanging virtual currency.

This summer, the IRS begun sending letters to taxpayers with virtual currency transactions that potentially failed to report income and pay the resulting tax from virtual currency transactions or did not report their transactions properly.

Praemonitus, praemunitus (forewarned is forearmed).

Sources:

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Mick18 Premium
I'm not involved in cryptocurrency, but can see this will be much needed information for those who are.
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GlenPalo Premium
Thanks for commenting, Mickey. It looks like the paperwork and record keeping requirements are a nightmare for crypto users.
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Tmgreen Premium Plus
I'm glad I steer clear of that beast. You gotta love Uncle Sam, he's gonna get ya one way or the other.

Cheers,

Michael
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GlenPalo Premium
Absolutely, the IRS will get you, particularly if you are NOT in the upper tax brackets. The IRS no longer has the budget or staffing to go after the rich, who lawyer up. So the IRS is focusing on small businesses and middle class taxpayers.
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Working54 Premium
I just love the IRS so much... don't you? (whispering sarcasm dripping from comment)

Thank you for posting, GlenPalo.
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GlenPalo Premium
One way to look at income tax payments is to consider it a reflection of success.
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Joes946 Premium
Yep, another good thing to avoid!
Joe
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GlenPalo Premium
Yes, it is.
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DMahen1 Premium
Great resources. I am not into crypto currency, but I am sure those who are will benefit from your post.
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GlenPalo Premium
Thanks, David. For me, it's another reason not to get involved with cryptocurrency.
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