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U.S. cryptocurrency investors get blindsided by the tax department

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Cryptocurrencies are not off the hook for taxes And it’s to the U.S. investors to learn the lesson. Yes, it is true, the Internal Revenue Service (IRS), the federal government agency responsible for the collection of income and other taxes, announces that a judge has issued an order permitting the subpoena to produce documents related to to residents who have failed to declare and pay taxes on cryptocurrency transactions.

Issued by U.S. district judge Paul G. Gardephe, this is a citing John Doewhich was not addressed directly to an identified individual, but was quickly transmitted to the My Safra Bank. It is to ensure that it produces – mandatorily – information on U.S. taxpayers that have failed to declare and pay taxes on cryptocurrency transactions.

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Treasury is trying to scare taxpayers, reminding them that it is currently conducting an all-out fight to find and tax tax evaders. – in connection with cryptocurrencies.

“The government’s ability to obtain information from third parties about those who fail to declare their gains from digital assets remains a key tool in catching tax evaders.”

Statement of the IRS Commissioner.

Cryptocurrency transactions in the tax crosshairs.

Against this backdrop, Safra Bank will have to issue information about the accounts of its customers holding cryptocurrencies. But it appears that the subpoena has an even more specific purpose, as the services seek information about the customers of SFOXa prime broker in cryptocurrencies. The latter would have had to deal with Safra Bank. And according to the Department of Justice (DOJ), these are. billions of dollars in transactions that would have passed through its platform since its launch in 2015.

In addition, a a dozen SFOX customers in an illegal situation would already be identified by the tax authorities. In the context of this investigation, they take the opportunity to recall that U.S. law requires the notification of “of gains and losses related to cryptocurrency transactions on their tax returns.” Although the Treasury itself acknowledges “tax compliance loopholes related to cryptocurrencies.”

“Taxpayers are required to accurately report their tax liabilities on their returns, and liabilities arising from cryptocurrency transactions are not exempt. The government is committed to using all tools at its disposal, including John Doe subpoenas, to identify taxpayers who have understated their tax liabilities by failing to report cryptocurrency transactions, and to ensure that everyone pays their fair share.”

Official IRS statement.

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