The Internal Revenue Service (IRS) announced on Friday that it has begun sending tax filings to more than 10 taxpayers who have transacted using virtual currency and could potentially fail to report and pay their tax dues.
The IRS believes that cryptocurrency transactions should be taxed like any other property transaction. If your employer pays you in cryptocurrency, your earnings are subject to federal income and payroll taxes. If you are earning crypto as an independent contractor, you will need to report this on Form 1099. If you are selling crypto, you may have to pay capital gains tax, and if you are mining, this should be reflected in your gross income.
βTaxpayers should take these letters very seriously as they review their tax returns, correct past returns as necessary, and pay taxes, interest, and penalties,β IRS Commissioner Charles Rettig said in a press release. β The IRS is expanding programs related to virtual currency, including greater use of data analysis. We are focused on enforcing the law and helping taxpayers meet their full obligations.β
Source: 3dnews.ru