TronWeekly

Crypto World News

You are here: Home / Archives for irs

irs

An Array Of Condolences Pour In Following An Update From McAfee’s Wife

by

Earlier this week, John McAfee, founder of popular anti-virus software, was arrested on an array of charges including tax evasion and endorsement of ICOs. The former presidential candidate was captured in Spain, awaiting his extradition to the United States. Amidst this, McAfee’s wife revealed that he was having a great time during his stay.

“Spanish Prison Is Not That Bad”

The business tycoon was on the run for a long time now and continued hiding from the IRS. McAfee was charged for concealing his tax liability as he steered his income that was to be paid into crypto exchange accounts as well as bank accounts. He carried all of this in the names of his nominees. As he was arrested in Spain, McAfee is mandated to spend his time in a Spanish prison until his extradition comes through. While going to jail can be horrifying for almost every individual, McAfee revealed that he was having a nice time.

Janice McAfee, the wife of John McAfee took to Twitter and revealed that he insisted on sharing a message with the community. Her tweet read,

“I was able to speak with John today. He is still in good spirits and wanted me to share this message with all of you.”

Ej4 u9tWAAAuBh3

After being sued for illegally promoting ICOs by the Securities and Exchange Commission, the agency revealed that McAfee had made more than $23.1 million through the ICOs. People scammed by the business tycoon poured in comments on Janice McAfee’s tweet and suggested that he deserved to be in prison.

However, McAfee seemed to have a huge fan base as several were seen sending their condolences to his wife. While many asked what they could do to help, Janice McAfee said,

“There’s not much we can do right now, it’s up to the lawyers lawyering. We have a team of the best so I expect a good outcome.”

Furthermore, a tweet from John McAfee’s official account had also surfaced Twitter where McAfee went on to elaborate on his new friend.

American Cryptocurrency Tax Defaulters Receive Another Warning Letter

by

  1. Internal Revenue Service ( IRS) has sent another stack of letters to alleged cryptocurrency tax defaulters.
  2. The letter warns U.S. crypto holders that they have information that indicates that they may have misreported their income and pay taxes on their cryptocurrency transactions.

According to a Bloomberg report, the U.S. tax agency verified that it had sent warning letters to cryptocurrency users dated 14 August.CoinTracker.io distributed a copy of the IRS warning letters on its website, claiming that they had received it from one of the users. The crypto tax service provider also claimed through the blog post that numerous Reddit users had received the same letter.

Cryptocurrency tax defaulters warned to file taxes correctly

The IRS warning letter requires U.S. residents to file amended returns or delinquent returns “within the notification period ending in August 2020. Furthermore , the agency cautioned cryptocurrency tax defaulters that they already have accurate records of cryptocurrency owners in the U.S and legal action would be taken if the tax defaulters do not meet their tax liabilities by the due date.

As has been the case in the past, the tax authority can send three different types of letters to taxpayers. The category depends on the state of the ratepayer and the extent to which the body opines that the subject intentionally avoids paying taxes.

According to CoinTracker’s head of Tax and Strategy, Shehan Chandrasekera, the initial two letters, letters 6171 and 6174-A, are intended for educational, and they are more lenient. However, in case the taxpayer receives the third one, letter 6173, they should take action immediately because it bears consequences and is more intense. Notably, this letter entails the risk of taxpayer inspection.

U.S. crypto tax laws

Trading crypto assets in the United States are subject to capital gains tax. That implies that at any moment that a U.S. taxpayer buys or sells virtual currencies, they must calculate and report the profits or losses made. Furthermore, those who receive their wages in the crypto form are also required to report this as revenue.

The IRS’s new drive follows a similar campaign where the agency sent warning letters to over 10,000 alleged cryptocurrency tax defaulters back in 2019. Back then, the agency issued the three different letters, requiring taxpayers to respond quickly to the third one.

United States IRS Decides to Look into Dealing with Cryptocurrency Taxes

by

The cryptocurrency industry has been the subject of several regulatory concerns in the last few years. Most of these concerns have often been aimed at two major sectors of the industry: security and the vulnerability to massive fraud.

When the cryptocurrency industry grew, so did the size and scope of the scams. The United States Internal Revenue Service [IRS] was the latest agency to move into the virtual asset world with a plan to combat cryptocurrency tax evasion.

Just last week, the IRS released a paper that requested independent experts to help crackdown on cryptocurrency tax evasion. The [SoW] report produced by the IRS set out their criteria, which focused mainly on tax returns on cryptocurrency gains/losses. Sources close to the IRS have reported that it would cover the taxation of small-time players

An excerpt from the SoW added:

“Taxpayer transactions can be relatively simple, or in some instances, they can have hundreds of thousands of digital asset transactions in a year.”

Reports have indicated that the IRS has been tracking the cryptocurrency space for some time. One of the first steps to be taken by the IRS would include trading of cryptocurrencies and related procedures. The IRS recognized that billions of dollars worth of transactions occur on these exchanges, while fraud occurs simultaneously.

At present, traders still have the option to obtain a crypto tax software and calculate the exact rate to be reported. The IRS had to reveal this information because reports circulated that the Agency needed requesting crypto firms to disclose user data.

The latest move from the IRS was met with some trepidation by officials in the cryptocurrency space. David Kremmer, Chief Executive Officer of CryptoTrader. Tax claimed that a lot of people in the industry would not be pleased with the decision, but those legitimate traders would have nothing to worry about.