IRS to Face Record Number of Loss Claims, Says Crypto Accounting Firm
HomeCryptocurrency NewsCryptocurrencies Latest News

IRS to Face Record Number of Loss Claims, Says Crypto Accounting Firm

Node40, a developer of bitcoin tax-reporting software, expects the U.S. Internal Revenue Service (IRS) to receive a record number of crypto...

21,000 New Locations Across Canada, Europe, Australia to Purchase Bitcoin Cash
Japanese Company Trials BTC and Smart Contracts in Real Estate Transactions
Russians Design а ‘Beautiful’ Mining Rig

Node40, a developer of bitcoin tax-reporting software, expects the U.S. Internal Revenue Service (IRS) to receive a record number of cryptocurrency-related tax return claims this year, as it predicts that many investors will decide to declare their losses.

Also Read: G20 Leaders Declare Commitment to Regulate Crypto Assets

Pros and Cons of Reporting

IRS to Face Record Number of Loss Claims, Says Crypto Accounting FirmCryptocurrency traders hit by considerable price declines in 2018 now have a strong incentive to report their activities to the authorities, in order to offset their losses against other tax liabilities. However, Node40 warns that doing so could have long-term consequences for investors. For example, if an individual reports particularly high losses, they may be questioned about where the money came from to begin with.

“It is clear that, with the huge falls in cryptocurrency markets during 2018, many people will be weighing up whether this is a good opportunity to reveal the losses they have suffered,” said Perry Woodin, co-founder of Node40. “Having not reported their crypto activity up to now though, those choosing to reveal losses this year will need to report their crypto positions every year from now on, giving the tax authorities much better visibility of people’s crypto involvement.”

What You Need to Know

IRS to Face Record Number of Loss Claims, Says Crypto Accounting FirmReporting taxes based on inaccurate calculations in the U.S. could result in penalties of up to 40 percent and tax courts often place the burden of proof on the individual rather than on the IRS. So it’s important that people who choose to report this year have written records of all transactions they took part in, including accurate gains or losses, as well as proper cost basis assignments. If you use accounting software to generate these documents, make sure that it can recover historical trade activity from all the exchanges and wallets you have ever used.

“There is a lot for individuals to consider when it comes to crypto accounting and their tax returns,” said Sean Ryan, co-founder of Node40. “For example, ‘hodlers’ will have a completely different set of circumstances to traders, while those receiving crypto from forks and then selling will also have a unique situation to deal with.”

Is reporting crypto losses worth the risk? Share your thoughts in the comments section below.


Images courtesy of Shutterstock.


Verify and track bitcoin cash transactions on our BCH Block Explorer, the best of its kind anywhere in the world. Also, keep up with your holdings, BCH and other coins, on our market charts at Satoshi’s Pulse, another original and free service from Bitcoin.com.

The post IRS to Face Record Number of Loss Claims, Says Crypto Accounting Firm appeared first on Bitcoin News.



from Bitcoin News https://ift.tt/2BTzq63
Name

Bitcoin News,5117,Bitcoinist.com,4741,Cryptocurrencies,4741,Cryptocurrencies Latest News,5117,Cryptocurrency Latest News,4741,Cryptocurrency News,9858,
ltr
item
Cryptocurrency Latest News: IRS to Face Record Number of Loss Claims, Says Crypto Accounting Firm
IRS to Face Record Number of Loss Claims, Says Crypto Accounting Firm
https://news.bitcoin.com/wp-content/uploads/2018/12/IRS-manhattan-768x768.jpg
Cryptocurrency Latest News
http://cryptocurrencylatest.blogspot.com/2018/12/irs-to-face-record-number-of-loss.html
http://cryptocurrencylatest.blogspot.com/
http://cryptocurrencylatest.blogspot.com/
http://cryptocurrencylatest.blogspot.com/2018/12/irs-to-face-record-number-of-loss.html
true
1236144943044321696
UTF-8
Loaded All Posts Not found any posts VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS CONTENT IS PREMIUM Please share to unlock Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy