The Federal tax agency IRS is very concerned about the tax evasion that is done by crypto owners. In the 2020 tax season, IRS has warned crypto owners to avoid tax evasion otherwise they would have to pass through serious penalties.
IRS has the authority to prove a criminal act if a crypto trader does not declare its transactions correctly. It has also sent warning letters to the US crypto owners. The tax agency has also sent refunds to some tax-paying crypto users who have correctly paid their tax.
The agency has updated its FAQ page specifically for crypto owners where they can find all the reasons behind tax evasion. Such a move was also used by Brazil’s tax agency which had created a penalty code for crypto tax evaders. IRS has also joined this policy for accurate crypto-related tax collection. Robert Hall & Associates are the tax preparers for individuals and companies. Many crypto traders are reaching out to these tax preparers for the new tax season so that they can deal with the issues related to the tax submission with IRS.
To curb the crypto owners, last year, IRS had gained a court order that allowed it to view Bitstamp’s customer information.
The new tax season starts at the end of January in the US. And IRS is the federal tax agency that collects income tax return files from the taxpayers every tax season. Currently, there are 150 million taxpayers in the county. They are looking to file their income tax returns as soon as possible so that they can get the tax refund quickly.