U.S. Based Tax Giant, H&R Block, Offers Clients Filing Services For Crypto Transactions
The U.S tax authority, Internal Revenue Service (IRS), released its tax guidelines for crypto investors and companies with cryptocurrency assets earlier in the year – and now they are enforcing it. The tax authority released over 10,000 letters to taxpayers with cryptocurrency assets transactions that are unreported or misreported. More crypto owners are set to receive letters at the end of the month as the April filing date deadline quickly approaches.
H&R Block Launches Tax Services to Crypto Traders
A professional tax obligations service company specialized in crypto assets, H&R Block, is aiming to assist investors in the filing process. In a press release on Sept 24, the tax company aims to:
“[Help] taxpayers file any missing returns, if necessary; prevent or minimize additional tax assessments; reduce or eliminate any tax, penalties, and/or interest owed; and obtain the best possible payment arrangements on any balance owed.”
The company charges a flat rate, upfront fee and works with the taxpayer till the tax filing is complete.
Andy Phillips, director at The Tax Institute at H&R Block, believes the tracking of crypto transactions will become more scrutinized as regulations are put in place. He further explained the need for H&R Block assistance in taxes filing for crypto investors. He said,
“Fortunately, not only do we know how to resolve a broad range of tax problems from the simple to the complex, but we also understand what it feels like and can help navigate people through to a solution.”
IRS Targets Cryptocurrency Assets
The tax authority gathers transaction data from the crypto exchanges in the country and compares it to the traders’ 1099-K report checking for irregularities. A mismatch between the two statements shows discrepancies in tax filing and IRA then sends you a letter of notice. The letter, as the 10,000 letters sent out, offers guidelines on the balance, or amount owed to the authority. The investor is then expected to pay in 30 days.