Crypto Digital Currency Assets Feed

Photo by Elisa Ventur on Unsplash When you make a mistake on your Form 1040, the best thing that could happen is the Internal Revenue Service will catch your relatively insignificant error, fix it, and send you a notice about the change. A worse outcome is the IRS changes reduce and/or delay the refund you're expecting. And the absolute worst tax error outcome is that your mistake isn't a minor one, and the IRS decides to take a longer, closer look at your filing. The only way to avoid these situations is to double check your return to ensure it's... Read more →


If you dabbled, or more, in innovative financial assets like crypto in 2022, then one of the most important lines on your 2022 tax return shows up early. The section just below where you enter your (and, if married filing jointly, your spouse's) name, the Internal Revenue Service asks: At any time during 2022, did you: (a) receive (as a reward, award, or payment for property or services); or (b) sell, exchange, gift, or otherwise dispose of a digital asset (or a financial interest in a digital asset)? (See instructions.) See more tax forms and more about them at 2022's... Read more →


The sports arena in Miami bore the FTX name until the cryptocurrency exchange filed for bankruptcy. (Photo by 350z33 via Wikipedia Commons) Even before the FTX meltdown, cryptocurrency operations were in regulators' and legislators' sights. Now more, worldwide, are calling for added government attention to the sector. European Central Bank (ECB) President Christine Lagarde has called regulation and supervision of crypto an "absolute necessity." Gary Gensler, chair of the U.S. Securities and Exchange Commission (SEC), in a Yahoo Finance interview today said his agency already has the authority it needs to oversee the crypto industry. But he also noted that... Read more →


Some of my grandmother's paintings, known as the main Vera Gallery in our house. (Photo by Kay Bell) The hubby and I are art fans, primarily of painted works. That's why almost all of our vacations include a visit to our destinations' museums. Our appreciation of a piece hanging on a wall is why most of our rooms are adorned by framed artworks. Most are signed limited edition print versions of our favorite painters' works. But we also have some originals of a few notable artists, as well as works that are more sentimental but just as lovely, like the... Read more →


Right now, a lot of folks are thinking they should have been like Larry. The Larry they wished they'd emulated is Larry David, known for his curmudgeonly television character. He tweaked that persona to become a naysayer on several inventions that, per the commercial's Super Bowl debut, changed the world. The television ad for FTX crypto exchange advised viewers, "Don't be like Larry" and instead invest in digital currency via the company. On Friday, Nov. 11, FTX filed for bankruptcy following reports that between $1 billion to $2 billion of FTX customer funds disappeared. Continuing crypto troubles: This is just... Read more →


The Internal Revenue Service's Criminal Investigation (IRS-CI) division is doing its part to close the Tax Gap, which now sits at $496 billion in uncollected tax. The IRS' law enforcement group's recently released annual report notes that its agents initiated more than 2,550 criminal investigations, identified more than $31 billion from tax and financial crimes, and obtained a 90.6 percent conviction rate on cases that were prosecuted. Much of IRS-CI's success during the 2022 fiscal year, which ended on Sept. 30, was due to its increased cooperation and partnership with its global counterparts to combat tax and financial crimes worldwide.... Read more →


Cryptocurrency continues to make inroads into our daily lives, including our taxes. On Sept. 1, Colorado officially became the first U.S. state to allow its residents to pay their state taxes in bitcoin. It's a pretty safe assumption that those Centennial State residents who pay state taxes with bitcoin also will be forthcoming at the federal level when it comes to their digital assets. But for those who are less transparent, the Internal Revenue Service is stepping up its efforts to know about and collect on crypto transactions. Legal action against hidden crypto: Last week, the IRS obtained a so-called... Read more →


If you believe cryptocurrency has democratized financial services and leveled the financial playing field, then have we got a deal for you. And by deal, we mean scam. That's a major finding of recently released U.S. Department of Treasury report, which also wants regulators to take more action against crypto fraud and scammers. The report, Crypto-Assets: Implications for Consumers, Investors, and Businesses, is in response to President Joe Biden's March 9 Executive Order 14067, which, directed Treasury (among other agencies) to examine ways to "ensure responsible development of digital assets." That's going to take a multi-agency effort, according to Treasury,... Read more →


Some on Capitol Hill want to make it easier for you to use your Bitcoin and other cryptocurrencies to make small, every day purchases. The 2022 election year legislative calendar might be working against them, but Congressional fans of cryptocurrency still are looking at ways to make it more appealing to mass consumers. On July 26, two Senate Banking Committee members, including the committee's top Republican, introduced the Virtual Currency Tax Fairness Act. The bill, cosponsored by Ranking Member Sen. Pat Toomey (R-Pennsylvania) and Sen. Kyrsten Sinema (D-Arizona) would, in part, make small personal virtual currency transactions for goods and... Read more →


Photo by Karolina Grabowska Cryptocurrencies are going through a rough patch, at least as far as the investment world is concerned. But devotees of the virtual assets insist they are here to stay, and that general acceptance of digital currency as payments for retail purchases is on the way. A recent survey seems to support that position. Widespread retail crypto payments expected soon: A majority of U.S. retailers expect digital currency payments to be the norm in the next five years, according to a study released last month by Deloitte in collaboration with PayPal. The study's poll in December 2021... Read more →


U.S. Department of the Treasury building, Washington, D.C. On March 9, President Joe Biden signed an executive order calling for a study of digital currencies. Advocates of regulating digital assets immediately pounced on the order. They viewed it as a bureaucratic move that would delay what they see as necessary government oversight of the expanding digital financial world. They were partially right. Even though the order, titled "Ensuring Responsible Development of Digital Assets," directed agencies across the federal government to produce reports on digital currencies and consider new regulations, not much has happened, at least publicly. Until now. The Treasury... Read more →


The Internal Revenue Service is under scrutiny again, this time for conducting unusual and intensive audits of two top FBI officials who were critical of Donald J. Trump. The IRS has asked the Treasury Inspector General for Tax Administration (TIGTA) to investigate how former FBI director James B. Comey and his deputy, Andrew G. McCabe, both were subjected to a rare, compliance research audit that is supposed to random. Congress also will get involved. Rep. Bill Pascrell (D-New Jersey) already, and repeatedly, has taken IRS Commissioner Charles Rettig to task for IRS shortfalls and missteps. In May, during a hearing... Read more →


If you added cryptocurrency to your investment mix, things have not been as fun as they were when the digital asset first burst upon the scene. Sure, markets go up and down all the time. But crypto has, for the most part, crashed, if not totally burned. Crypto's volatility and unproven long-term track record is why many advisers have warned against putting it, or putting just a little, into portfolios. Some crypto fans, however, are willing and eager to own it. In fact, they want to go all in and add it to their retirement savings. That retirement plan possibility,... Read more →


Crypto currency aficionados thought the worse thing happening to their holdings lately was the crashing market prices. Sorry. There's more. Tax investigators say they've discovered a possible $1 billion Ponzi scheme focusing on the crypto market. More than 50 potential crypto tax offences have been uncovered by international tax inspectors, according to reports out of a recent London conference of leaders of the Joint Chiefs of Global Tax Enforcement (J5) countries. The J5 was created to fight transnational tax crime through increased enforcement collaboration. The participating tax agencies — the Australian Taxation Office (ATO), the Canada Revenue Agency (CRA), France's... Read more →


Photo by RODNAE Productions from Pexels Tax Day 2022 is just more than a week away, and based on Internal Revenue Service filing statistics, millions of us need to get to work. Uncle Sam's tax collector says the nearly 92.3 million filings it received through April 1 are running about 2 percent behind last year's numbers. Using 2021 numbers for comparison, that's more than 77.8 million unfiled returns so far this year. Of course, last year's filing figure is larger than previous years since millions who weren't required to submit returns did so that they could get COVID-9 economic impact... Read more →


Photo by RODNAE Productions from Pexels Cryptocurrency's popularity skyrocketed during the height of the COVID pandemic. Celebrities endorsed it. Athletes and government officials embraced it. So, of course, more of the less famous added the virtual money to their portfolios. Then 2022 arrived. The value of most cryptocurrencies has plummeted in recent weeks, wiping out billions of dollars of wealth. But the bad news doesn't stop there. Now it's tax time. IRS' increasing interest in crypto: The digital money's growing acceptance naturally attracted the tax man's attention. The Internal Revenue Service says that for tax purposes, crypto is treated property.... Read more →


Yes, I know I've used this cats and Boxing Day meme before, most recently last Dec. 26. But c'mon. It's a great image that every cat lover immediately recognizes. Happy Boxing Day! While this holiday is not formally celebrated in the United States, many places across the rest of world embrace the day after Christmas as a way to keep the giving going. The great image of felines' fixations on boxes notwithstanding, just how did Dec. 26 come to be known as Boxing Day? One widely circulated accepted origin story is that when it began back in the United Kingdom's... Read more →


Photo by RODNAE Productions from Pexels I know, it seems like it's all crypto all the time of late here at the ol' blog. But that's because that's what's happening right now in the tax world. There is, of course, the new tax reporting rules for digital assets, including cryptocurrency, that are part of the just-enacted transportation law. One of the reasons lawmakers approved the closer look by the Internal Revenue Service at digital transactions is because law enforcement officers have found the sector rife with criminal tax activity. It's not just anecdotal reports. OK, it is some anecdotal reports,... Read more →


Photo by Alesia Kozik from Pexels President Joe Biden signed the Infrastructure Investment and Jobs Act of 2021 (IIJA) into law on Monday, Nov. 15. The new law, like prior transportation bills, does include plenty of traditional roads and bridges provisions. But it went decidedly digital to help cover some of its $1.2 trillion costs. The IIJA includes reporting requirements that mandate cryptocurrency exchanges share information with the Internal Revenue Service. The good news for crypto fans who are freaking out is that they have time to adjust. These reporting rules generally don't go into effect until 2023. Here are... Read more →


Photo by Joshua Welch via Pexels It actually happened. Infrastructure Week — or more accurately, weeks — finally is real. And it will be officially celebrated on Monday, Nov. 15, when President Joe Biden signs H.R. 3684, the Infrastructure Investment and Jobs Act, into law. The measure, of course, provides fund for traditional transportation projects across the United States. It also includes money for soft infrastructure efforts, notably extending broadband internet service to the more rural parts of the country, as well as several environmental components. Overall, the bill costs $1.2 trillion. Of that amount, $550 billion of new federal... Read more →