The IRS wants to know all about your Bitcoin holdings — and this court summons is a reminder

SourceCNBC
SectorFinancial Markets
CountryMiddle east

The IRS wants Circle, a Boston-based financial technology company enabling trade in various types of cryptocurrencies, to produce account-registration information, account activity records and other materials for customers who had at least $20,000 in transactions any year from 2016 to 2020. Cryptocurrency has gained prominence and value over the year, but the IRS says tax reporting hasn’t kept up. The IRS issued Circle with a summons, which is part of an ongoing investigation by the Internal Revenue Service to make sure all sorts of cryptocurrency users across the board are reporting and paying up their tax obligations, the government explained in court papers. The IRS treats cryptocurrency as property and, when it’s sold at a profit, the tax collection agency will assess a capital-gains tax. If, that is, the IRS knows the transaction occurred. The IRS and the Justice Department note they are not alleging any wrongdoing on Circle’s part — but based on dealings with some people who have Circle accounts, the feds...read more...