Have you paid your cryptocurrency tax? This question is becoming even more serious as taxation agencies continue to pursue crypto holders and traders. Taxation in crypto has been quite ambiguous, as most countries still lack any taxation policies for the crypto industry. For the jurisdictions that have attempted to enforce crypto taxation, it hasn’t been so smooth, due to the lack of public sensitization on the subject.
The U.S. Internal Revenue Service (IRS) has been one of the government agencies that have sought to enforce crypto taxation. The agency has been talking tough this year, even sending over 10,000 letters to crypto holders whom it believes owe the government taxes. However, the number of people who have heeded its call remains very low.
Speaking to CoinGeek, Muroch stated, “The generally low numbers of crypto holders submitting their holdings comes as no surprise due to the overall lack of transparency by the IRS, and minimal exposure of new regulation in the mainstream media, preventing investors from seeing the clear picture.”
Muroch, whose firm has more than $3 billion in assets under management, believes that things are slowly changing. Crypto holders are getting more knowledgeable with taxation, thanks to the increased media coverage on the subject. Regulators have also formulated some policies that encompass the sector.
He remarked, “The U.S.-based Internal Revenue Service and Generally Accepted Accounting Principles (GAAP) will likely serve as the status-quo for businesses and professionals when operating and transacting with cryptocurrencies and the accompanying taxation requirements. This will be especially important for businesses and investors wishing to do business or transact in the U.S.”