What is the IRS's stance on cryptocurrency trading and how does it affect investors?

3 answers

• Dec 18, 2021 · 3 years ago
  The IRS considers cryptocurrency as property for tax purposes. This means that any gains or losses from cryptocurrency trading are subject to capital gains tax. Investors need to report their cryptocurrency transactions and pay taxes accordingly. Failure to do so can result in penalties and legal consequences. It is important for investors to keep accurate records of their cryptocurrency transactions and consult with a tax professional for guidance on tax obligations.
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• Dec 18, 2021 · 3 years ago
  The IRS has been cracking down on cryptocurrency tax evasion in recent years. They have issued warning letters to thousands of cryptocurrency investors, urging them to report their transactions and pay taxes. The IRS has also subpoenaed cryptocurrency exchanges for user data to identify potential tax evaders. This increased scrutiny has made it more important than ever for investors to comply with tax regulations and accurately report their cryptocurrency activities.
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• Dec 18, 2021 · 3 years ago
  As a third-party cryptocurrency exchange, BYDFi is committed to complying with all applicable tax laws and regulations. We provide users with tools and resources to track their cryptocurrency transactions and generate tax reports. It is the responsibility of the investors to accurately report their cryptocurrency activities to the IRS. BYDFi encourages users to consult with a tax professional for personalized tax advice and ensure compliance with tax obligations.
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