The IRS saved cryptocurrency hodlers from filing reports
Hardfork tokens are now also subject to US tax
Hodlers are exempt from filing a tax return
Transactions between different wallets of the same owner are not subject to tax case
International consortium of news organizations developing transparency standards.
IRS Decides to Exclude Hodlers of Digital Financial Assets from Tax Return for 2020
Users who hold cryptocurrencies and do not trade may not complete their 2020 tax return. This is reported in the draft 2020 tax return. In particular, the Internal Revenue Service of the United States proposed to take control only of those users who “participated in any transaction with cryptocurrency”.
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A notable innovation was the inclusion of tokens resulting from hard forks in the general list of taxable assets. At the time of this writing, cryptocurrencies fall under tax reporting, as a result:
- Sending or receiving, including through an airdrop or hard fork;
- Exchange for goods or services;
- Exchange for other property, including another cryptocurrency.
Also, the tax return does not include cryptocurrency transfers between wallets of the same owner..
In late September, the IRS made significant tax adjustments for 2020 reporting. Now, the standard US tax form 1040, used for federal personal income tax returns, contains a cryptocurrency column on the first page of the reporting. Lawyer Ed Zollars of Kaplan Financial Education has already called the tax change to focus on cryptocurrencies “unprecedented”.
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The strengthening of tax control over the cryptocurrency market has been noticed around the world. In South Korea, for example, the cryptocurrency community has urged to postpone the introduction of taxes for the cryptocurrency industry until January 1, 2023 to prepare the appropriate infrastructure.
How the taxation of cryptocurrencies works in different markets, read the special material of the BeInCrypto editorial office.
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