10,000 American Cryptocurrency Owners Will Receive Warning Letters From the IRS

[elsniper]

On July 26, the U.S. Internal Revenue Service (IRS) announced that the tax agency has started sending letters to American cryptocurrency owners advising them to pay their taxes. According to the organization, three types of letters will be sent to more than 10,000 taxpayers by the end of August. The news follows the recent IRS taskforce slide that shows alarming recommendations on how tax agents should investigate digital currency users.
https://news.bitcoin.com/10000-american-cryptocurrency-owners-will-receive-warning-letters-from-the-irs/

[Broly46]

Taxing bitcoin sound perfectly legit to me, but taxing shitcoin? I think they got a lot of paperwork to do, will IRS accept crypto to be part of the tax payment? We can tossing thousands of shitcoin to them with just a click of button.

[Leonardo7]

That is okay with the Americans, pay your tax to enjoy more infrastructural development lols. In my country, I doubt any of my friends pay Cryptocurrency tax, I don't pay either because no one knows if I am into crypto. The business of the government is taxing the people to hell. I may soon shut down my shop because of double taxation and face only crypto.

[asayoyaasa]

Dealing with regular tax is hard enough for me. Cause you know not all of us get taught about it in school. I'm not US citizen anyway, in my country bitcoin nor legal or illegal, feel free to use it you won't get taxed by it but any loss or damage will never be a government problem.

[Kakmakr]

Why wait until the IRS knocks on your door? You know you have to pay taxes on all income you receive and all profit that you make, so just pay the damn taxes and be done with it.    I know some people will try to use the "I did not know" card, but if you really did not know, did you contact them to ask them?

The first thing I did when I had to file my tax papers, was to phone them and to ask for advice. This was put on record, so they cannot say that I did nothing and just wanted to avoid paying taxes. They gave me guidance and I paid the capital gains taxes that I owed them and now I sleep like a baby at night. 

[7788bitcoin]

Dealing with regular tax is hard enough for me. Cause you know not all of us get taught about it in school. I'm not US citizen anyway, in my country bitcoin nor legal or illegal, feel free to use it you won't get taxed by it but any loss or damage will never be a government problem.

You really do not need to learn everything about tax is school, all you need is to approach a legal chartered accountant and he will help you with the tax puzzle and all you need is to provide your financial details and he will do the work for you, that is how things are done in a civilized world  . Even if there is no regulation regarding bitcoin in your country it comes under income from other sources and you have to pay your tax to be on the right side of the law.

[Red-Apple]

only 10000? i would have thought there were a lot more. either all Americans turned into tax payers without evading anything or IRS seems to be missing a lot. specially with all these services such as Coinbase reporting every single move of their customers to the IRS already.

[avikz]

Dude, there re a lot of discussions on this topic already.

Don't just say that discussions are ongoing. Instead post links to those discussions!

That is okay with the Americans, pay your tax to enjoy more infrastructural development lols. In my country, I doubt any of my friends pay Cryptocurrency tax, I don't pay either because no one knows if I am into crypto. The business of the government is taxing the people to hell. I may soon shut down my shop because of double taxation and face only crypto.

There's nothing to feel proud about it! Every responsible citizen pay taxes and don't run away from it. In my country, the legal status of cryptocurrency is unknown as government is yet to come up with a regulatory framework. That didn't stop me from paying my taxes diligently. I added my crypto incomes with my salary income and paid the taxes accordingly. If you pay your taxes correctly, at least you will have some upper hand when the income tax authorities will come to knock your doors.   

[eternalgloom]

Taxing bitcoin sound perfectly legit to me, but taxing shitcoin? I think they got a lot of paperwork to do, will IRS accept crypto to be part of the tax payment? We can tossing thousands of shitcoin to them with just a click of button.

What's the difference for the IRS? If someone's making money of off it, they're going to tax it, that's just how it works.
I hate paying taxes as much as the next guy, but on some level I do think it's needed to pay taxes, given that society needs them in order to function.

Now, what I do not agree with is what those taxes are spent on, but seems like the different parties in our government seem to think otherwise

[Broly46]

What's the difference for the IRS? If someone's making money of off it, they're going to tax it, that's just how it works.
I hate paying taxes as much as the next guy, but on some level I do think it's needed to pay taxes, given that society needs them in order to function.

Now, what I do not agree with is what those taxes are spent on, but seems like the different parties in our government seem to think otherwise

Yeah everyone should pay their taxes, I think most civilized countries are extremely good at avoiding taxes, that’s also why their taxes rate are among the highest, a 25% taxes for a commodity? I never paid tax as high as 25%, I think it is a robbery.😁

[duglin]

Ok I'll pay taxes if they'll allow me to trade in this market normally. Trading normally includes not banning Binance for US citizens.

[Zionatin]

True crypto users don't need to pay much tax since they do not "cash out" their coins for fiat, thus no tax to pay and the beauty of bitcoin. The IRS sound like thugs coming to get their "protection" money.
Love how they act like paying tax is the most important thing ever and moral bound, when you see how they waste it. If it wasn't about money noone would care. It has nothing to do with morals.

[creeps]

Ok I'll pay taxes if they'll allow me to trade in this market normally. Trading normally includes not banning Binance for US citizens.

Its the decision of Binance and not the US government, so you still need to pay taxes. So many cryptousers are being watched by the US government and maybe this is the reason for them to tally at least a 10,000 crypto users who are not paying taxes. Just pay the tax correctly, and you’ll be safe using your cryptocurrency.

[Broly46]

True crypto users don't need to pay much tax since they do not "cash out" their coins for fiat, thus no tax to pay and the beauty of bitcoin. The IRS sound like thugs coming to get their "protection" money.
Love how they act like paying tax is the most important thing ever and moral bound, when you see how they waste it. If it wasn't about money noone would care. It has nothing to do with morals.

The FED can print 99.9% of the money supply while peasant like you and me earn the 0.1% of money supply, and IRS will perversely coming to you and tax as high as 50% out of that 0.1% money supply that peasant have,

https://tradingeconomics.com/united-states/money-supply-m0

such is the real life, welcome to the real world where everything is so twisted the poor will be heavily punished for being poor, and where first world countries has highest homeless populations, and don’t look at other people, I’m talking it to you, and yeah it is you the peasant I’m taking.😁

[kryptqnick]

On July 26, the U.S. Internal Revenue Service (IRS) announced that the tax agency has started sending letters to American cryptocurrency owners advising them to pay their taxes. According to the organization, three types of letters will be sent to more than 10,000 taxpayers by the end of August. The news follows the recent IRS taskforce slide that shows alarming recommendations on how tax agents should investigate digital currency users.
https://news.bitcoin.com/10000-american-cryptocurrency-owners-will-receive-warning-letters-from-the-irs/

I think it makes sense that the government wants to receive the taxes, and Bitcoin is not a property and is unfairly treated as such. I also wonder that the letters are only sent to around 10k people in the US whereas there are clearly way more crypto users there. I think it would only be fair to start with those who profit most from their crypto-related activities. In my country, I was thinking about paying taxes, but there's no legislation and in fact, it would be hard to pay them and it might draw unwanted attention to me. And my revenue is modest, I don't think the taxes should even be applicable in such cases.

[DdmrDdmr]

The number of recipients seems pretty small so far. In Spain, this year’s tax campaign had the additional bonus of a pop-up message for 14.700 tax payers using the official software, stating that the tax agency (Hacienda) knew of their involvement in crypto, and indicating that tax must be paid for the derived benefits (somewhere in the 19% to 23% area). Lots of grey area still to be made clear on the taxation front, but the pop-up has been rather much a shocker.

[coin-investor]

I'm not from America, but I'm surprised at the number, these are, those documented, but the number should be higher the Americans has a lot of investors and traders, maybe some Americans knew that this is forthcoming and so they do not want to be documented and instead prefer to trade on Decentralized exchange and avoid being traced.

[oleg681010]

How will they determine how many fees I need to pay? I will pay only for those crypto which I have now? Or for all the transactions?

[krb91]

If the IRS is asking cryptocurrency holders to pay taxes in holdings, then it should be willing to accept it as a legal means of exchange or as an asset. I still think its a step towards accepting cryptocurrency for whay it is-MONEY.

[rdluffy]

Here in Brazil we have to pay taxes over cryptos to, but it's insane because their own rules are so confusing and impossible to understand
I hope in US the government is better at explaining exactly how to pay the taxes

It's almost impossible to track everything in my opinion