US tax Authorities Send Letter to Crypto Investors

US tax Authorities Send Letter to Crypto Investors

The US tax authorities send letters to more than ten thousand crypto owners who live in the United States. In the letter, the IRS requests that the amount invested in cryptocurrency be reported to the tax authorities. This is apparent from a press release from the US tax authorities, the Internal Revenue Service (IRS).

How did the tax authorities of America get the data? That is not very clear. In the letter, the IRS says that this data has been obtained through “different compliance efforts”. Perhaps the IRS has requested customer information from major American crypt exchanges. Consider, for example, Coinbase.

“Tax must be taken seriously”

In the press release, Chuck Rettig tells about the letter. He is an IRS commissioner: “Taxpayers should take these letters seriously by reviewing their tax returns and, where necessary, modifying earlier returns and paying back taxes, interest and fines.”

He continues: “The IRS is expanding its efforts with regard to virtual currencies, including increased use of data analysis. We are focused on enforcing the law and helping taxpayers to fully understand and fulfill their obligations. “

In May this year it was announced that the IRS will be working on a new policy in the field of cryptocurrency, the old policy dates from 2014 and was due for a revision. Various organizations and interest groups believe that cryptocurrency should be considered as intangible property for giving up tax.

How does that work in the Netherlands, bitcoin and tax?

You also have to pay tax on bitcoin and other cryptocurrency in the Netherlands. The Dutch tax authorities regard bitcoin and other crypto coins as assets for “other assets”. See what you save as extra savings.

Do you trade actively in cryptocurrency? Or mine your cryptocurrency? Then it may be that other rules apply to you. Take a look at this page to see how you can declare your cryptocurrency as a tax: