Cryptocurrency Taxation and Reporting Requirements
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).