Cryptocurrency holders all over the United States are way much aware of the objectives of the IRS. Just some few days ago, the tax agency sent out some new forms to its recipients. In this latest form, the agency is attempting to dig deeper into the crypto past of those who are in the market.
How IRS Works
Those who opt not to be honest concerning their holdings will definitely feel the consequences so soon. There is something that is pertinent for all the US virtual asset holders and users. They have to report all their earnings and holdings to the IRS.
In addition to that, they also have to report their losses to the agency. But there is one thing that has continued to be a bit disturbing. It is the manner in which the agency continues to pry the cryptocurrency enthusiasts for more information.
Once Again, IRS Is At It Again
There is a new form that is surfacing on the main website of the agency. It shows how the taxpayers will have to explain how they acquired and exchanged their virtual coins. It also explains how these coins were sold by the users.
Whereas the questions could appear innocent enough, the answers that are offered by the users could create certain precedents for the future. All of that confirms that IRS is not relenting any time soon when it comes to collecting crypto-related information from the users around the United States.
What IRS Aims To Gain
Gathering all the crypto-related information from the US citizens is not really a bad thing. However, one has to wonder what the tax agency seeks to achieve by all these. There are some citizens who are not willing to voluntarily give their information to the tax agency.
Some fear that this might place them at the radar of the agency. According to them, this might lead to a personal audit. Based on the answers that the agency gets in the process, it would be a plausible outcome.
What The Users Need To Do
For the users in the United States of America, there is very little to do, but just to answer all the questions in a truthful manner. Those who have nothing to hide should never be afraid of anything. IRS seems to be much focused in ensuring that all the crypto users are protected. That explains why it wants to gather information concerning these users.
For a long time, users have questioned the motive of this tax agency. Some have even protested the move to have their information taken by the agency. However, it seems that the agency is not giving up anytime soon.