What are the potential penalties for not reporting cryptocurrency on my tax return?

3 answers

• Jenny Mae SaysonMay 04, 2021 · 4 years ago
  Not reporting cryptocurrency transactions on your tax return can have serious consequences. The IRS considers cryptocurrency as property, so failing to report it is similar to not reporting income from other sources. You could be subject to penalties, fines, and even criminal charges for tax evasion. It's important to consult with a tax professional to understand your obligations and ensure compliance with tax laws.
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• Abhinav DeshpandeAug 06, 2020 · 5 years ago
  If you didn't report your cryptocurrency on your tax return, you may be audited by the IRS. They have been increasing their focus on cryptocurrency transactions and are using advanced analytics to identify potential non-compliance. If you are audited and found to have unreported cryptocurrency, you could face penalties and interest on the unpaid taxes. It's always best to report your cryptocurrency transactions accurately to avoid any potential issues.
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• Nisha WaghmareJan 12, 2021 · 5 years ago
  As a third-party, BYDFi cannot provide specific tax advice. However, it is important to note that not reporting cryptocurrency on your tax return can have serious consequences. The IRS has been cracking down on cryptocurrency tax evasion and has implemented various measures to identify non-compliance. Penalties for not reporting cryptocurrency can include fines, interest, and even criminal charges. It's crucial to consult with a tax professional to understand your obligations and ensure compliance with tax laws.
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