Cryptocurrency Tax Issues
Bitcoin, Ethereum, Litecoin, and many other virtual currencies or “cryptocurrencies” have taken the world by storm. For U.S. taxpayers, cryptocurrency trades are generally taxable, requiring taxpayers to keep detailed records and track their investments and trades. The IRS is actively pursuing income under-reporters by obtaining the names and taxpayer identification numbers of U.S. taxpayers from cryptocurrency exchanges such as Coinbase.
Failing to comply with IRS guidelines for cryptocurrency, or worse, failing to report taxable cryptocurrency exchanges, may result in a tax assessment, interest, civil penalties, and possibly even criminal charges. It is critical to seek the advice of a tax attorney who is knowledgeable about cryptocurrency.
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