The IRS has increased the number of audits they perform regarding foreign accounts.
Cryptocurrency Profit and Tax to the IRS
- The IRS has increased the number of audits they perform regarding foreign accounts. As you may already know, if you don’t report your foreign accounts, you will be subject to very severe penalties from the IRS.
- Not disclosing or abusing your cryptocurrency tax techniques can be tied to tax evasion.
- The IRS is starting to seek help from knowledgeable individuals to assist them with audits of cryptocurrency accounts. So, hiding crypto money becomes harder and harder.
- The IRS added specific sections in current tax reporting where taxpayers have to answer additional questions regarding cryptocurrency.