US government intensified procedure against tax evasion in connection with cryptocurrencies, while IRS improves NFT regulation and combats tax fraud

US government intensified procedure against tax evasion in connection with cryptocurrencies, while IRS improves NFT regulation and combats tax fraud

A tweet of American President Joe Biden In May 2023, attention has drawn attention to crypto tax policy. The President criticized the alleged favoring of wealthy crypto investors in tax policy on Twitter. While some people in the crypto community argued that this statement was misleading, the tweet shows a bigger problem: the US federal government tightens its approach to tax evasion in connection with cryptocurrencies.

The taxation of cryptocurrency transactions is often an unclear “gray area” within the existing tax legislation. Due to the incomplete guidelines of the Internal Revenue Service (IRS) for non -fungible tokens (NFTS) and decentralized financial transactions (Defi), many investors have chosen aggressive approaches to tax reports over the years.

In March 2023, the IRS published its first guidelines on NFTS, in which the categorization of these digital assets were presented as collectibles and the corresponding taxation. Julie Foerster, director of digital assets of the IRS, announced that the agency plans to implement a new company plan for cryptocurrencies within the next year. The US government also wants to close the "loopholes" that have made it possible to exploit certain laws. The bidet administration's budget proposal includes an expansion of the Wash-Sale rule to cryptocurrencies that would prevent investors from making capital losses.

The IRS has reinforced its efforts to combat tax evasion in connection with cryptocurrencies. As early as 2016, the IRS issued a John Doe Summons against Coinbase, which forced the stock exchange to pass on customer data to the federal government. In cooperation with contractors such as Chainalysis, the IRS analyzes the blockchain to identify "anonymous" wallets and link them to well -known investors. The government also takes measures to prevent the use of privacy coins, could make potentially easier tax evasion.

It is likely that the IRS will continue to priority to regulate cryptocurrencies in the future. Financing through the bid administration has led to increased attention and resources to combat tax fraud in connection with cryptocurrencies. Investors should proactively report their capital profits and income to ensure compliance with tax laws. This includes comprehensive documentation of all cryptocurrency transactions and the use of suitable resources such as crypto tax software, which facilitates the persecution of profits, losses and income. If necessary, it is advisable to consult a tax consultant with experience in cryptocurrencies. It is important to note that tax evasion represents a criminal offense and the IRS does not have a certain period of time to check fraudulent tax practices. In order to avoid civil and criminal sanctions, investors should carefully report their profits, losses and income to the IRS.