If you are in Ventura, California, you have become more aware of the subject of cryptocurrency in recent years. Congress is also taking more notice of cryptocurrency transactions.
During a Senate Finance Committee hearing on April 13, 2021, Senator Rob Port man stated, “We’re working on a cryptocurrency bill which would define cryptocurrency for tax purposes and try to provide appropriate reporting rules. . . . We’re working on the bill, it’s meant to be bipartisan, it’s something where we can help to close the tax gap in that area”.
Senator Port man’s comments reflect the increasing attention being given to cryptocurrency transactions by government officials. The Internal Revenue Service (“IRS”) is giving increased attention to taxpayers who are not reporting the income from their cryptocurrency transactions (“crypto income”) for tax purposes.
The IRS is concerned with unreported crypto income because taxable crypto income can be realized from many different sources.
Income that is derived from the purchase and sale of a cryptocurrency investment is taxable crypto income.
When you receive cryptocurrency for doing work on the “blockchain ledger” in a “mining” transaction, from a company for its marketing or promotional purposes in an “airdrop” transaction, or as payment for goods (if the cryptocurrency exceeds your tax basis in the goods) or services, the cryptocurrency is taxable crypto income.
If you are in Ventura and have unreported crypto income, you can be subject to several negative consequences.
First, you can owe interest and penalty liability on the unreported crypto income.
Second, the IRS can institute a tax audit of you and pursue collection procedures against you, including from wage garnishments, bank levies, and asset forfeitures, because of the unreported crypto income.
Third, because unreported crypto income is a criminal violation of the law, you can face monetary fines and incarceration as a result of the unreported crypto income.
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The increased attention of the IRS concerning unreported crypto income has been exemplified in various ways.
With “Operation Hidden Treasure”, the IRS has formed a dedicated joint unit of IRS fraud and criminal enforcement personnel to investigate cases of unreported crypto income.
The IRS has contracted with the cryptocurrency tax service provider, TaxBit, to provide services in connection with cryptocurrency tax audits.
The question, “At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?”, is asked on year 2020 Form 1040 tax returns.
Given this increased focus on cryptocurrency, it is essential that if you have unreported crypto income,you need to receive assistance from someone who knows how to address unreported crypto income situations. You need the assistance of Leading Tax Group.
Leading Tax Group has the necessary knowledge of cryptocurrency issues to comprehend how to best handle your unreported crypto income case. Moreover, Leading Tax Group has the substantive experience in representing other Ventura taxpayers in their unreported income cases to understand how to best deal with the IRS to successfully resolve your unreported crypto income case.
Based on the above, Leading Tax Group has the critical requirements to help Ventura taxpayers with their unreported crypto income cases.
Leading Tax Group has an office at 1500 Palma Drive in Ventura.
If you want to minimize the adverse consequences from unreported crypto income (regardless of what action is taken by Senator Portman and Congress), and live in the Ventura area, you need the aggressive and experienced tax representation of Leading Tax Group. Contact Leading Tax Group now!
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