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Bitcoins / Breaking News / Exchanges

WARNING The IRS to tax Millions of Bitcoin Trades

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:

  • 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.

Source US Tax law

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.

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Frances is a writer for Crypto Daily, and she is responsible for bringing you the latest news on everything that is related to the Crypto world. She has a keen interest in Cryptocurrencies, and has many years of experience writing in all different roles. She is incredibly passionate about writing, and this combined with her interest into the finance, and virtual currency sector means that you are kept up to date with all of the latest news and information regarding all cryptocurrencies.