It’s 2019 But Most Bitcoin And Crypto Investors Refuse To Report Taxes Due To Lack Of Clarity
Most Bitcoin And Crypto Investors Refuse To Report Taxes
Not many Bitcoin and crypto investors will pay their taxes this year, it seems, at least the taxes that they should pay for their Bitcoin and crypto trading. As the deadline for reporting taxes grow nearer in the United States, it seems that most investors are willing to risk everything in case the Internal Revenue Service (IRS) discovers that they are avoiding taxes.
A lot of people actually leaves their taxes to be paid at the last minute, which is normal, but a poll created by a crypto media influencer, Crypto Wendy O., has seen 80% people saying that they will not report their crypto earnings at all. 15% of her followers are actually doing this right now and 5% will leave to the last minute because they like to live dangerously.
It should be noted that the pool omitted any response for the people who have already done their taxes, though, so take the results with a grain of salt.
Even if you actually lost money investing instead of gained it, you have to report your taxes, the U. S. tax law affirms. In fact, it can be very advantageous to report losses, as they may incur you with benefits for doing so. However, it seems that most people are simply not very interested at all in doing it.
Reporting Crypto Taxes Can Be Tricky, But You Should Still Do It
We know that many crypto investors (in fact, many people in general) do not like taxes. However, you still have to pay them or it can be worst for you when the IRS finds out about you breaking the law. The fines can be very hefty, so taking some time is the best idea.
Exchanges are working together with the regulators and they often provide data for the IRS, so you may not escape as easily as you think you will. You can even go to jail for not paying your taxes in the worst case scenario.
Despite the fact that crypto taxes are very ambiguous in the United States, there are many services that can help you, so there is no need to be afraid. Many services can pull your exchange data from APIs and then program your gains and losses, which make the whole situation easier.
Some specialists are even eager to do your taxes for you, so there is simply no good reason at all not to do it and get away from any future hassle.