Understanding the Different Notices from the IRS It’s the thing that no one wants to…
Crypto Transfers Exceeding $10,000 Required To Be Reported To IRS
IRS Increases Enforcement Of Cryptocurrency Reporting
The Biden Administration has introduced several proposals recently to improve enforcement of tax laws by the IRS, not only to raise revenues, but also to ensure that all taxpayers pay their fair share. One of the latest proposals being considered to require all cryptocurrency transfers of more than $10,000 to be reported to the IRS.
Cash transactions of more than $10,000 are already required to be reported to the IRS, and the Treasury Department says that it only makes sense that crypto transactions with the same fair-market value should also be reported.
Though the Treasury Department noted that cryptocurrency transactions account for a small share of overall business transactions, it said that requiring people to report them is an important step to minimizing the shifting of assets into cryptocurrencies or other devices used to evade tax obligations.
The newest tax proposals also call for banks to report on account activity to provide a second measure of accountability for transactions.
Many cryptocurrencies lost value in the stock market after the proposed changes were announced.
The proposed changes are just the latest in many efforts the IRS has taken to increase tax enforcement, and specifically to increase enforcement of cryptocurrency reporting.
Contact Former IRS Attorneys In Scottsdale, AZ
The tax attorneys at Silver Law PLC are ready to help if you are unsure about your cryptocurrency reporting and tax obligations, or if you have already received word that you will be audited or fined for cryptocurrency transactions. But you shouldn’t wait to get audited or fined to take action. The IRS will only continue to strengthen its monitoring and enforcement of virtual currencies. You need to get a clear understanding of your tax obligations and make whatever changes are needed now. Our Gilbert Tax attorneys can help.
Our attorneys have all worked for the IRS, so they have a unique understanding of how to litigate cases from both sides of the aisle. They will explore all options for helping you avoid penalties, either before the IRS comes calling or after. Call us today to schedule a consultation with an experienced Phoenix tax attorney today.
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