Minuscule Amount Of 2017 Tax Filers Report Cryptocurrency Transactions To IRS: ReportFebruary 15, 2018 2:17 pm
A very small percentage of US citizens who have filed federal tax returns thus far this year via personal finance service Credit Karma reported cryptocurrency transactions to the Internal Revenue Service (IRS), Reuters reported.
Less than 100 out of 250,000 citizens, or 0.04 percent, failed to mention cryptocurrency transactions, the report said.
Credit Karma Tax General Manager Jagjit Chawla said the company was unsurprised about such a small amount of cryptocurrency filers, since citizens “with more complex tax situations” usually tend to file later in the tax season, the report said.
However, Chawla noted considering the rise of cryptocurrencies in 2017, the company “would expect more people to be reporting,” Cryptocoinsnews said.
The US 2018 tax filing season began on Jan. 29, the report said, and the deadline to submit 2017 tax returns is April 17.
Cryptocurrency, the report said, is treated as property, the report said. Because of this, the IRS considers the purchase, sale, trade and mining of cryptocurrency as taxable events, subject to taxation rules.
Independent cryptocurrency trader Brandon Williams told CNBC it would be more reasonable for him to treat cryptocurrencies as currencies, since property status is “almost a deterrent in [the] pursuit of mainstream adoption,” Cryptocoinsnews reported.
According to Williams, the miniscule amount of cryptocurrency tax filings reported by Credit Karma points out “the difficulty in accurately reporting your crypto gains and losses,” the report said.
Williams said with more than two cryptocurrency tradings a day, it takes at least three or four hours every two weeks to record trading gains and losses, taking into consideration volumes and volatility, the report said.
– WN.com, Jack Durschlag