To all US bitcoin traders you are now in the sights of the internal revenue service for not complying to report your trading gains.
The IRS have decided that a share of up to $150 billion of bitcoin trades should go to the lovely US treasury, and is now taken steps to make this happen. All the IRS is waiting for, is a judge from San Francisco judge to grant an order that will allow an audit of one of the largest US cryptocurrency exchanges “Coinbase Inc”.
The ruling will open the door for the IRS to investigate files of any other Cryptocurrency exchange anywhere in the world (That does a large amount of trades in the United states of America).
Under US tax law, Bitcoin traders should file several documents with the IRS:
Source US Tax law
- Form 8949 to report any capital gains or losses on transfers
- FBAR forms to report foreign accounts that exceed $10,000 at any time during the year. Any Bitcoin denominated account falls under this category, even if the virtual currency is for playing poker online.
- Bitcoin exchanges, traders and related businesses should report yearly with details of US residents with virtual currency accounts with balances of more than $50,000 or US expats with similar accounts but with a $200,000 balance.
So anyone who has taken full advantage of the major price boost to make a profit should certainly take steps to tell the internal revenue service! Because maybe one day, your data will be handed over to them anyway.