TAMPA, Fla. โ As tax filing season kicks off this week, tax experts are warning that if you made money in crypto last year, the IRS is coming for you.
โThey have estimated that there is a trillion dollar tax shortfall and cryptocurrencies make up a big part of that,โ said Steve Ribble of Guardian Accounting Group in Tampa. "They're going after it because people are trying to dodge paying income taxes in the US on cryptocurrencies."
As crypto investing has become more popular in recent years, the IRS launched Operation Hidden Treasure last year and scrambled to obtain registrations from major cryptocurrency brokerages.
The companies deal with thousands of crypto trades and transactions each year, and if your name appears on the records, the IRS is tipping over, it will be hard to hide.
Last year, the IRS targeted two major cryptocurrency brokers and has applied to more this year.
Spectrum News spoke with local crypto investor Ashley Butler, who says that while the IRS enforcement action may turn some off, it won't deter long-distance investors like her.
"People who want maximum profits are not going to be afraid of a tax code," Butler said. "I don't think it will take away from the opportunities to get into Solana earlier, or Ethereum earlier, or Bitcoin earlier."
Butler says that investors who are serious about crypto are welcoming the tax regulations because he says they will help legitimize the currency.
Cryptocurrency is taxed differently than your weekly paycheck, so if you invested, traded, or earned income from cryptocurrency in 2021, sitting down with a tax expert when you file your return could save you from enforcement action by the IRS. .
