Less than 100 out of 250,000 citizens, or 0, 04 percent, who filed federal tax returns this year through Karma’s personal reported cryptocurrency transactions to the US Internal Revenue Service (IRS), Reuters reported on Tuesday (February 13th).
The general manager of the credit tax Karma Jagjit Chawla said that the company was not surprised. depositors of cryptocurrency, since citizens “having more complex tax situations” generally tend to deposit later in the tax season. However, Chawla added that considering the rise of cryptocurrencies in 2017, the company “would expect more people to declare”.
The US 2018 tax reporting season began on January 29 and the April 17 deadline.
The IRS, which began providing advice for the imposition of Bitcoin in March 2014, treats cryptocurrency as a property. As such, the IRS considers the purchase, sale, trade and operation of cryptocurrency as taxable events.
Independent cryptocurrency trader Brandon Williams told CNBC that it would be more reasonable to treat cryptocurrencies as currencies. The status is “almost a deterrent in [the] the pursuit of traditional adoption.”
According to Williams, the small amount of cryptocurrency declarations reported by Credit Karma underlines “the difficulty of accurately declaring your Crypto Williams’ earnings and losses said that with more than two cryptocurrency trades a day, it takes at least three or four hours every two weeks to record trading gains and losses, taking into account volumes and prices. volatility.