USA: How to file taxes if you used cryptocurrencies in 2021
To print this article, all you need to do is register or log in to Mondaq.com.
Taylor Weinstein, an attorney with the firm's Tax and Investment Management Groups, was recently interviewed by Weather magazine on how to manage the tax implications of investing with cryptocurrencies. According to Weinstein, crypto is โan area that the IRS is looking to heavily audit, because I think they see it as a huge revenue raiser.โ
Weinstein goes on to point out that the 1099-K form is mission critical as many crypto exchanges have started issuing a tax form called 1099-K for your most active merchants (ie those who have exceeded $20,000 in gross payouts and 200 separate transactions). โThis is the IRS's number one line of defense right now, because those 1099-Ks are filed with the IRS at the same time they're delivered to the recipient... (i) It's going to be the IRS's weapon in finding crypto transactions. taxableโ.
The full article, which was picked up by other means, including BTC crypto newsis it availabe here.
The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought according to your specific circumstances.
POPULAR ARTICLES ABOUT: US Technology
