Crypto Tax Refunds & the IRS (November 16, 2019) – A number of cryptucurrency investors reported they have received tax refunds from the Internal Revenue Services (IRS) after declaring crypto assets.
As a result, the website, Law360, published many reports by cryptocurrency investors claiming to have received crypto tax refunds after including their crypto investments in their tax forms. The report surfaces as the IRS complaining that crypto assets are being under reported.
Crypto tax & the Internal Revenue Services (IRS)
The founder of CoinTracker, the popular crypto tax firm co-founded by Chandan Lodha says the IRS is showcasing those crypto tax refunds to encourage crypto investors to pay taxes on their crypto assets and holdings.
Recently, the IRS sent a $3,900 tax bill to a crypto investor. After paying the bill, he received a crypto refund check from the IRS.
Crypto Tax Girl, the Certified Public Accounting (CPA) firm helping crypto investors navigate the tax codes, for example, reported that over 10,000 cryptocurrency holders have received letters from the Internal Revenue Services (IRS). Those letters claiming the crypto owners owe taxes. We recently reported the IRS is also going after Bitcoin / crypto ATMs.
IRS targeting cryptocurrency asset holders
For instance, those who are targeted 2017 were extracted when Coinbase released info for 13,000 customers after a lawsuit by the IRS. As a result, Laura Walter, Crypto Tax Girl co-founder proclaimed the suit was a message to investors to become and stay complaint.
“Most of my clients who received these were early Coinbase users. They’ve gone out to some big fish, but also to some smaller holders too.
It seems as if this is a warning to everyone to get compliant as quick as you can while the IRS is still feeling somewhat forgiving 🙂
— Crypto Tax Girl (@CryptoTaxGirl) July 26, 2019“
How to file and pay cryptocurrency taxes: list of companies
To remain compliant with the IRS, therefore, all cryptocurrency holders in the United States must file and pay taxes on their crypto assets.
Below are two popular crypto-based tax companies or firms helping customers staying out of trouble with the Internal Revenue Services.
1. Crypto Tax Girl (https://cryptotaxgirl.com/)
Crypto Tax Girl is handle by a single crypto tax accountant who goes by the social media handle #CrypoTaxGirl.
Her website contains valuable crypto tax tips, videos, courses. Crypto holders can also set up and appointment to get help with crypto tax forms.
2. CoinTracker (https://www.cointracker.io/) – Get $10 credit by clicking on this link to sign up.
Co-founded by former Google Engineer, Jon Lerner, CoinTracker’s mission is to “transition the world to a digitally-native financial system that’s frictionless, reliable, and accessible to everyone.”
For instance, as a CoinTracker use, you can connect all your crypto wallets from any exchanges in one place. The software will pull all crypto transactions, wallets, and portfolios. It will then general your federal and state tax returns. All that can be done instantly with one click of a button.
If you have been targeted or receive a letter from the IRS claiming you owe taxes on your crypto assets, please report to us using the comment form below.
Mathieu is a Information technology professional with over 15 years of experience. He started one of the first bitcoin blogs existed in 2010. He started writing about, investing in bitcoin and promoting the first cryptocurrency when only a few technological savvy people knew about it. Mathieu is a world traveler who enjoys culture, technology, finance, salmon, rice and beans. He’s cool, collected and knows a great deal about blockchain technology.