Our tax whisperer – long time tax accountant Don DeSantis – told me about the IRS’s campaign to make sure Bitcoin transactions are properly taxed.
The IRS suspects that a lot of people are using cryptocurrency to under-report their income. Among the approximately 20 million Americans who trade in Bitcoin, the IRS figures only 40% are accurately reporting their earnings.
And so the IRS will be hiring more cryptocurrency experts, and Don says they’ve also been sending out friendly letters to Bitcoin users – Here’s the gist:
“Hi– we’re the IRS. We want to help educate you about cryptocurrency … and amend them.”
Yet given the current state of IRS technology, Bitcoiners are probably not too worried.
It’s no surprise that by some estimates, tax evasion has reached a trillion dollars a year. That would pay for some pretty decent infrastructure.
I bring this up because I think the IRS has a fundamental responsibility that goes beyond revenue collection, and that is its responsibility to make sure that law-abiding middle-class taxpayers don’t feel like suckers.
Which is exactly how we feel when we read about Bitcoiners, or anybody – getting a tax break that we don’t.
It’s bad enough when they get away with it legally. But for someone to get away with it illegally just makes you want to rip your mask off and sneeze.
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