US Tax Service Investors Cryptocurrency Investors

The efforts of the United States tax service (US) or the Internal Revenue Service (IRS) to levy taxes from cryptocurrency have begun to show results.

Since the end of 2017, the IRS has persuaded a federal judge to order a San Francisco-based Coinbase based cryptocurrency exchange with about 20 million subscribers to submit customer information.

These IRS demands are beginning to bear fruit. It is seen from the IRS who has pocketed data as much as 13,000 Coinbase clients who make transactions using cryptocurrency with an average transaction value of US $ 20,000 or more between 2013 and 2015.

The data includes customer name, taxpayer identification number, date of birth and address, and account statement.

Bryan Skarlatos, a lawyer at Kostelanetz & Fink, reminded investors of cryptocurrency about the IRS's greatness in uncovering tax irregularities.

Previously, the IRS has been able to persuade Swiss banks to be transparent about customer data, thereby making Switzerland no longer a haven for US taxpayers.

"Since 2009, more than 56,000 Americans who hide money in overseas accounts have paid more than $ 11 billion to settle tax issues. The cryptocurrency holders should not think they can hide from the IRS, "Skarlatos said.

Cryptocurrency investors with a transaction scale below US $ 20,000 are also worried, as these investors enjoy a rise in cryptocurrency during a "boom."

In addition, other exchanges also ask its clients to be more routine in reporting transactions to avoid tax penalties or imprisonment. Indeed, cryptocurrency investors need not be afraid of the success of the IRS. Because the intention of the IRS to target tax from cryptocurrency actually already declared since 2014 ago.

At that time the IRS issued a notice stating that cryptocurrency is an investment property, such as a stock or real estate, not a currency like the dollar.

So, if an investor sells cryptocurrency after holding it for more than a year, then the profit is usually a long-term capital gain. The tax rate is 0%, 15%, or 20%, plus an additional tax of 3.8% depending on the total income of the owner.

Some holders of cryptocurrency begin to cooperate by disclosing transactions with cryptocurrency that have the possibility of a tax deviation in the past to avoid possible criminal charges.