Crypto Currency Investors will be hunted by Tax Officers

The US Internal Revenue Service (IRS) effort, to attract taxes from the crypto currency seems to be paying off.

Source Image

The Wall Street Journal website reported Friday that since the end of last year the IRS persuaded a federal judge to order Coinbase, a crypto currency exchange in San Francisco with about 20 million subscribers, to submit customer information.

The IRS has begun to pay off, on Friday (16/3/2018), the IRS has bagged 13,000 Coinbase clients who bought, sold, sent or received a crypto currency with an average transaction value of US $ 20,000 or more between 2013 and 2015.

The data includes customer name, taxpayer identification number, date of birth and address, plus account statement.

Bryan Skarlatos, a lawyer at Kostelanetz & Fink, reminded investors of the crypto currency about the IRS's greatness revealing various tax deviations.

It is the IRS that persuades Swiss banks to be transparent with customer data, making Switzerland no longer a haven for US tax collectors.

"Since 2009, more than 56,000 Americans who hide money in overseas accounts have paid more than $ 11 billion to settle tax issues.The crypto currency holders should not think they can hide from the IRS," said Skarlatos, quoted by the Wall Street Journal .

Crypto currency investors with a transaction scale below US $ 20,000 are also feeling anxious. The reason these investors enjoy the increase in currency crypto during the booming currency crypto.

Exchanges other than the currency crypto is now asking its clients to be more routine in reporting transactions to avoid tax penalties or imprisonment.

Indeed, crypto currency investors should not be surprised by the success of the IRS. Getolnya IRS eyeing taxes from the currency crypto actually been sparked since 2014 ago.

At that time the IRS issued a notice stating that crypto is an investment property, similar to a stock s or real estate, not a currency such as dollars or francs.

So, if an investor sells a crypto currency after holding it for more than a year, then the profit is usually a long-term capital gain.

The tax rate is 0%, 15%, or 20%, plus an additional tax of 3.8% depending on the total income of the owner.

Some crypto currency owners have begun working together to disclose transactions with crypto currencies that have the possibility of a tax deviation in the past to avoid possible criminal charges.