150 million taxpayers will have to answer this crypto ques on new IRS Tax Form

[bobthebuildr]

Mass adoption by taxes? 150 Million people about to be exposed to crypto through new IRS Tax Form. Check it out:

https://www.cryptotrader.tax/blog/new-irs-1040-tax-form-cryptocurrency

[1714857684]

1714857684

[1714857684]

1714857684

[1714857684]

1714857684

[1714857684]

1714857684

[1714857684]

1714857684

[1714857684]

1714857684

[Wynn1427]

Highly doubt this even moves the needle towards mass adoption based on just updated IRS tax form. From what I have seen in the past households with even a taxable investment account is quite low. KYC and Tax regulation seem to be the only way the government can begin to slow down the blockchain space.

[MURONDI]

I think it's very difficult to apply tax on crypto, that's why some countries prohibit bitcoin maybe because crypto is an asset to avoid government taxes, one effective way to collect taxes is through exchanges, the exchange will increase transaction costs to pay taxes to the government.

[HeRetiK]

I doubt this will do much for mass adoption but it's definitely yet another example of cryptocurrencies being legitimized. It's quite interesting to see how far we've come, especially since virtual goods having "real world value" has been a hard to grasp concept for most people for the longest time (and it still is for many).

I think it's very difficult to apply tax on crypto, that's why some countries prohibit bitcoin maybe because crypto is an asset to avoid government taxes

Pretty much every country relies to some extend on people self-reporting their income. People avoiding taxes by earning off-the-book income has been a thing since... well, since people have taxes. Crypto has nothing to do with it.

[LeGaulois]

Far to see a 'ray of mass adoption' with the tax form, especially if they learn they may have a tax to pay. A lot don't even understand what is asked on it. It's worth noting too that it's only a draft, so it's not final. The problem is the same as in my country, (we already have tax laws, etc.) The declaration is based on trust between the citizen and the tax dept. Currently they have no way of verifying what is being said.

It's not like with our salaries in which they can check very well by comparing with what your boss declared for you, etc.
Here there is nothing, governments have no power over platforms. They can always try to put the pressure on an exchange, as it happened with Coinbase but most of them, if not all, will always reject

[avikz]

Mass adoption by taxes? 150 Million people about to be exposed to crypto through new IRS Tax Form. Check it out:

https://www.cryptotrader.tax/blog/new-irs-1040-tax-form-cryptocurrency

This kind of steps of IRS will do more harm than good! If cryptocurrency gets a special place on the tax filing form where every tax payer has to answer certain questionnaire, it will create unnecessary panic to the common people! Even if it will increase the visibility of cryptos among them, but such special mention kn the tax form will force them to think negatively about it! IRS is just running the game for US!

[figmentofmyass]

Highly doubt this even moves the needle towards mass adoption based on just updated IRS tax form.

it might even act as a deterrent to adoption.

if i was ignorant about bitcoin and saw that question, i'd interpret it as "if i buy bitcoin, it'll attract attention from the IRS". who wants that?! must be nice to be able to check "no"........

It's not like with our salaries in which they can check very well by comparing with what your boss declared for you, etc.
Here there is nothing, governments have no power over platforms. They can always try to put the pressure on an exchange, as it happened with Coinbase but most of them, if not all, will always reject

gemini and kraken have fallen in line too---they issued 1099-K forms to the IRS along with coinbase last tax season. i bet bitflyer US, binance US, bittrex, and others will fall in line when 1099 reporting season comes around again.

poloniex has chosen to kick out USA traders instead.

[Harlot]

I don't see any kind of irregularities for Bitcoin or for any other cryptocurrency in that matter being taxed by the US government and I think it's the right step on being equal with the law since crypto earners also need to pay their tax obligations with their country. This is not a sign from the government for us to be discourage on the industry but this is them working things around with the industry. And yes this is a sign of mass adoption or at least an acceptance by the government that their citizens can indeed earn through Bitcoin, I would rather pay taxes than have crypto banned in my country which will just cut all my opportunities to earn in the industry.

[Oasisman]

I don't see any kind of irregularities for Bitcoin or for any other cryptocurrency in that matter being taxed by the US government and I think it's the right step on being equal with the law since crypto earners also need to pay their tax obligations with their country. This is not a sign from the government for us to be discourage on the industry but this is them working things around with the industry. And yes this is a sign of mass adoption or at least an acceptance by the government that their citizens can indeed earn through Bitcoin, I would rather pay taxes than have crypto banned in my country which will just cut all my opportunities to earn in the industry.

Obviously a sign of fully accepting Bitcoin and other cryptocurrency. The government will always interfere when they see any disadvantages against them that are out of their control. So, it's always gonna be better to just tax everything we earn as profit, than totally ban the source of income. Though we know any government could regulate Bitcoin by putting taxes to monetize the people who are earning big time in crypto trading like the stocks, but It's our "responsibility" as you said, to pay taxes from it. Infact the IRS also have fair deductions of profit, like when you sold your Bitcoin on a lower price than the actual price when you buy it, you can write off your capital loss to save you a buck on your tax bill.

[error08]

It's because they live in U.S., a country that wants to apply tax on anything its citizens have; Taxes are levied on income, payroll, property, sales, capital gains, dividends, imports, estates, and gifts, as well as various fees. Someone can't avoid a regulation, if he doesn't want to, simply get out of the country, because there will be law enforcement for those who don't follow the rules. Well, at least people in the U.S. pay taxes based on their capital gains, it's not like they are in a loss but still a pain in the ass for many people to hand over what belongs to them.


Source

[CryptoBry]

Mass adoption by taxes? 150 Million people about to be exposed to crypto through new IRS Tax Form. Check it out:

There is no correlation here. The government will be collecting taxes and it does not care whether is a massive adoption of cryptocurrency or not. Of course, the IRS will be happy if there can be an increase of revenues they can collect because people are gaining profits in their cryptocurrency holdings and usually IRS does not care if you are having a hard time in your cryptocurrency venture or that the government as a whole is making it difficult for people to get access and hold digital assets.

The only advantage here is that this has become part of the news especially during tax season, at least free advertising for cryptocurrency. At least 150 million will become aware of cryptocurrency when it is time to file the tax form. I am still glad that in my country, we are not yet that strict in implementing tax laws and we can still avoid not declaring our cryptocurrency involvement though am sure that time is coming when the tax collecting department can took notice of the revenue potential of this fledgling industry. Certainly, two things we can't avoid in life: taxes and death.

[audaciousbeing]

Fifty million people would not be exposed to crypto as a result of this form because when you see a form, its expected to cater from all categories of citizens and the moment it does not concern you, you just move on to something else and even if you are forced to read it, it still does not make any difference to you.

Reading the document and explanation from the link, I see no difference from what was done the previous year that crypto is subjected to capital gain tax. The part that remains still grey is the sale of a particular crypto to another crypto and not cash for a gain. Where do they expect the guy to get the cash to pay the tax except they would accept it in crypto.

[mindrust]

From my understanding over the years, crypto and USA don't mix well. If you want to deal with crypto or better yet, make a living out of it, you better move to another country. Tax laws are already too suffocating in the US maybe it is time to try some other country which is more crypto/tax friendly.

[Lucius]

mindrust, I have to agree that the laws concerning cryptocurrency and taxes in the USA are really rigorous if anyone wants to play by the rules. I know that trading profit is subject to taxation, but if you buy something for crypto this is also extra taxed which actually discourages people from spending Bitcoin or any altcoins.

What I see whit this IRS move is the intention to warn people that any dealing with cryptocurrency is or may be subject to taxation, and if you say NO, you may be in big problems if authorities request such data from crypto exchanges one day.

I can say that in some parts of the EU we have very loose laws as regards cryptocurrency a few years back, but this is changing with increasingly stringent AML laws. Regarding not paying tax, Germany is maybe the best option - no tax if you sell 1+ year after buying and no extra tax for paying with crypto.

[1Referee]

Regarding not paying tax, Germany is maybe the best option - no tax if you sell 1+ year after buying and no extra tax for paying with crypto.

It's not as rosy as it appears to be, because if you hold a certain amount of crypto for a full year, it's added up to your overall wealth that will be taxed annually, which means that you still pay tax over the coins that you bought. I know that from experience because I'm more or less subject to these tax laws myself as a european citizen.

The problem with seemingly loose tax laws in one field is that governments make up for it by taxing you extra (directly or indirectly) in another field. They invented this legal form of theft and they know how to give people the impression that they are getting an advantage while there in reality is no advantage at all.

[Theb]

You should keep in mind that they are using the word "virtual currency" here and not just "cryptocurrency" I think they are being too lose about this matter and are covering all kinds of income earned virtually and that is counting money received from online payments like Paypal or Payoneer. This might not just be crypto related anymore but the updated form is about the rise of the digital age we have now and I think the US government is aware that a lot of people are earning through the use of the internet may it be cryptocurrencies or any kind of payments receive via online payments and I think it's what's this form all about.

[malevolent]

It's not as rosy as it appears to be, because if you hold a certain amount of crypto for a full year, it's added up to your overall wealth that will be taxed annually, which means that you still pay tax over the coins that you bought. I know that from experience because I'm more or less subject to these tax laws myself as a european citizen.

Are you a German tax resident? I was under the impression that wealth taxes in Germany were against their constitution. I can't find anything about what you're referring too, maybe I'm missing something.

[Harlot]

I don't see any kind of irregularities for Bitcoin or for any other cryptocurrency in that matter being taxed by the US government and I think it's the right step on being equal with the law since crypto earners also need to pay their tax obligations with their country. This is not a sign from the government for us to be discourage on the industry but this is them working things around with the industry. And yes this is a sign of mass adoption or at least an acceptance by the government that their citizens can indeed earn through Bitcoin, I would rather pay taxes than have crypto banned in my country which will just cut all my opportunities to earn in the industry.

Obviously a sign of fully accepting Bitcoin and other cryptocurrency. The government will always interfere when they see any disadvantages against them that are out of their control. So, it's always gonna be better to just tax everything we earn as profit, than totally ban the source of income. Though we know any government could regulate Bitcoin by putting taxes to monetize the people who are earning big time in crypto trading like the stocks, but It's our "responsibility" as you said, to pay taxes from it. Infact the IRS also have fair deductions of profit, like when you sold your Bitcoin on a lower price than the actual price when you buy it, you can write off your capital loss to save you a buck on your tax bill.

It's not only a disadvantage on them it is also an inequality on other citizens who are paying their taxes right. The key here is equality whether your income is from a business or salary or in cryptocurrencies if crypto earners are not paying their taxes right then the government's system is unjust on the others. Do not look "taxes" as some kind of evil thing leeching your money away as most countries have them in order to survive, if taxes and KYC is something we need to sacrifice in order to have their full support and carry mass adoption then I think it's a worth trade off in the long term beside we really don't have any choice as they are the ones running the country not us. If you really don't want taxes you can move out of your country and find a country who is tax free.

[malevolent]

If you haven't noticed, all the regulations and KYC are so far doing is slowing down progress by making it harder to do business if it involves cryptocurrencies. I don't see how it's supposed to lead to 'mass adoption'.

[robelneo]

From my understanding over the years, crypto and USA don't mix well. If you want to deal with crypto or better yet, make a living out of it, you better move to another country. Tax laws are already too suffocating in the US maybe it is time to try some other country which is more crypto/tax friendly.

So far it is not yet implemented in our country, we do not have these things in our country, maybe we are not yet in the majority, and there are still no guidelines being released by our Tax collector on how they are going to proceed to tax us, by in the US, they are so strict on it, can they traced all the profits of those coming from other sources, it's really a good move to move to other Crypto friendly country if you are making huge money from Cryptocurrency.