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IRS will make you disclose cryptocurrency on newest tax forms
FOXBusiness ^ | dec 19 2020 | Vandana Rambaran

Posted on 12/19/2020 6:00:55 AM PST by Presbyterian Reporter

The Internal Revenue Service explicitly asks taxpayers to disclose their cryptocurrency transactions on the newest tax form, making it easier for the federal government to tamp down on fraud or tax evasion later down the line.

“At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?” the form, released last week, asks, with two options: yes or no.

The question about virtual currencies has been included in tax forms since 2014, as a disclosure that should be treated as property for tax purposes. Cryptocurrency sales or exchanges are taxed as a capital gain or loss, much like a stock or bond, and income from the currencies are also taxed.

But this year, the recently released Form 1040 has the question listed first, right below the taxpayer's name and address, indicating the spotlight the IRS has on cryptocurrencies.

The crackdown by the IRS comes as Bitcoin reached a record valuation of $16,118, its highest level since 2018, in November.

The IRS has ramped up investigations on underreported cryptocurrency investments in recent years, even summoning digital currency exchange Coinbase and Bitstamp to release information about their investors' activity to glean information about underreported capital assets.

Amongst its high-profile cases include software mogul John McAfee, who was charged in October with alleged tax evasion using cryptocurrency.


TOPICS: News/Current Events
KEYWORDS: democratdonations; drugs; humantrafficking; irs; moneylaundering
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I have thought for a long time that Bitcoin is a good place for criminals to launder their illegal money.

Those criminals would include politicians who take bribes.

Will these latest rules be the result of the actions by the Biden Crime Family?

1 posted on 12/19/2020 6:00:55 AM PST by Presbyterian Reporter
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To: Presbyterian Reporter

Skip “cryptocurrency” and its nonsense.

Hardware store flat washers, the size of a US quarter, are 2 x value of a quarter.


2 posted on 12/19/2020 6:04:54 AM PST by linMcHlp
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To: Presbyterian Reporter

One Bitcoin = 23,392.87 US Dollars as I key this in.


3 posted on 12/19/2020 6:05:15 AM PST by House Atreides
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To: linMcHlp
"Hardware store flat washers, the size of a US quarter, are 2 x value of a quarter."

Yeah, "free trade" made everything cheaper.

4 posted on 12/19/2020 6:07:31 AM PST by familyop
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To: Presbyterian Reporter

Crime is often on the leading edge of “enterprise”.


5 posted on 12/19/2020 6:09:32 AM PST by EEGator
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To: Presbyterian Reporter
I don't think the IRS needs any bitcoin records to prosecute the Bidens if they really wanted to.
It is an interesting article. Will they require the bitcoin vendors to send 1099 type forms to the IRS/Customer in the future?
6 posted on 12/19/2020 6:09:55 AM PST by Kid Shelleen (Beat your plowshares into swords. Let the weak say I am strong)
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To: Presbyterian Reporter
At the peak in Dec 2017 (or was is 2016) I sold a bit more than one and donated one. I wrote off the gains from the sales using the donation. Since then I've made a few sporadic sales. Of course I lost some when one of my phones was reset, and I ought to be able to write that off.
7 posted on 12/19/2020 6:10:25 AM PST by palmer (Democracy Dies Six Ways from Sunday)
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To: linMcHlp

Just drill a hole in the quarter and use it for a washer.


8 posted on 12/19/2020 6:10:37 AM PST by Lurkina.n.Learnin (Democrats are the slumlords of American politics )
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To: Presbyterian Reporter

Bitcoin can be publicly watched and tracked. Monero is another matter. I wouldn’t get near Monero.


9 posted on 12/19/2020 6:11:37 AM PST by familyop
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To: Presbyterian Reporter
Lol, you’re dreaming if you think has anything to do with politicians or their corruption.

This is completely meant to scare, chill and crack down on regular people as cryptocurrency goes more and more mainstream. Freedom has been replaced by “if you have nothing to hide you have nothing to fear” — that’s why the IRS is going to the big exchanges for transaction information. The IRS assumes that unless they know in advance how you owe them, you’ll try to scam them. That a person can be perfectly honest, pay their taxes in full, but simply prefer to keep their own business private, doesn’t cross the mind of any corrupt drone at the IRS.

Same thing with the ATF suddenly cracking down on 80% build suppliers (and consumers, if you believe some reports). It burns their asses like a torch to think of law-abiding citizens legally building their own, legal, non-registered firearms. “But it can’t be traced if it’s used in a crime! It’s a GHOST GUN!” They assume that every law-abiding citizen is a potential criminal and needs to be tracked and treated as such.

10 posted on 12/19/2020 6:13:26 AM PST by TheDandyMan
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To: linMcHlp

I remember back when buying crypto felt like a back alley deal... you’d meet up with someone and hope for the best. Now that most buy through exchanges this is easy to track, but most who bought early won’t be tracked till they sell through an exchange.


11 posted on 12/19/2020 6:14:37 AM PST by Katya (lacking in the feelings department, )
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To: Kid Shelleen
Will they require the bitcoin vendors to send 1099 type forms to the IRS/Customer in the future?

I was restricted at coinbase because they didn't know my identity. I remember getting a form in 2017 or thereabouts from another site. But most of my sales are through overstock and newegg. They don't send forms but they have the transactions in my account there, and they know who I am more or less. I assume they could send the info to the IRS if they wanted to or were asked for it.

12 posted on 12/19/2020 6:16:01 AM PST by palmer (Democracy Dies Six Ways from Sunday)
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To: linMcHlp

Hardware store flat washers, the size of a US quarter, are 2 x value of a quarter.

.....................................................

And if that quarter were made of gold it would be worth $471 worth of flat washers.


13 posted on 12/19/2020 6:17:04 AM PST by Graybeard58 (The China virus doesn't scare me, Venezuelaism does.)
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To: House Atreides

That’s poor journalism to use a much lower quote from a month ago.


14 posted on 12/19/2020 6:18:22 AM PST by aynrandfreak (Being a Democrat means never having to say you're sorry)
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To: linMcHlp

Scrap Iron and steel are not very valuable.

Shaped into a washer makes it useful in a lot of projects.

You can buy bulk flat washers very cheaply, but one or two at a time in the hardware store makes them fairly expensive. Very small sale transaction.

I spent 40 years in the wholesale hardware distribution business. Bulk bolts and washers are inexpensive in general, the mark up on 2 step distribution and added cost of putting them in a plastic bag costs.

But yes, the value of US coins are not in the metal they make them out of. Copper has been a lot more valuable than the penny that the US mint strikes them from.

Copper has some very good uses, like jackets for bullets.


15 posted on 12/19/2020 6:18:30 AM PST by Texas Fossil ((Texas is not where you were born, but a Free State of Heart, Mind & Attitude!))
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To: Presbyterian Reporter

The tax man wants their cut. They don’t care how you make it. Just pay up. The whole “unearned income” section is basically for you to “admit” to illegal/abnormal income. They don’t care how you got it, just report it and pay up.


16 posted on 12/19/2020 6:18:56 AM PST by discostu (Like a dog being shown a card trick )
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To: TheDandyMan

Many of the worst criminals work for the Federal Government. Some of them in alphabet agencies. Like the Mafia, they take care of each other.


17 posted on 12/19/2020 6:22:15 AM PST by Texas Fossil ((Texas is not where you were born, but a Free State of Heart, Mind & Attitude!))
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To: House Atreides

“One Bitcoin = 23,392.87 US Dollars as I key this in.”
***********************************
And it’s 23,557.80 less than 20 minutes later as I key in.


18 posted on 12/19/2020 6:22:18 AM PST by House Atreides
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To: Texas Fossil

Copper is a good conductor too.


19 posted on 12/19/2020 6:25:45 AM PST by EEGator
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To: Texas Fossil

Government IS the Mafia. They learned, and refined, La Cosa Nostra’s techniques, and superseded them entirely.


20 posted on 12/19/2020 6:28:29 AM PST by abb
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