Crypto and taxes hardly go together like cream and sugar. Yet every crypto investor or business these days faces them. For many, starting with the United States Internal Revenue Service’s launch of the “it’s property, not currency” mantra in 2014, it has been six long years of trying to comply. However, there are plenty of useful tools available that may help with the process. But make no mistake, there are still many unanswered questions that can make doing your taxes a nightmare.
Even most noncrypto taxpayers think of taxes as complex, and they are not wrong. But when it comes to crypto, the tax rules can seem overwhelming. Yes, the IRS has released a few dribs and drabs of guidance. Though much of it has been in informal FAQs, such as those issued in 2019, but are they reliable? The Government Accountability Office points out in its Virtual Currencies: Additional Information Reporting and Clarified Guidance Could Improve Tax Compliance report that this guidance is not binding. So, as a technical matter, you can’t even rely on it.
Continue Reading on Coin Telegraph
