Crypto Tax Cheats Likely to Get Relief as US Crackdown Hits Snag

The US government's bid to collect billions of dollars in taxes is hitting a snag, with the Biden administration poised to delay when crypto brokers and exchanges must start gathering detailed information on their clients' trading. From a report: The Treasury Department and the Internal Revenue Service are likely to push off a January date for the firms to begin tracking data such as customers' capital gains and losses, according to people familiar with the matter who asked not to be named because a final decision hasn't been made. The move would mean the tax agency waits longer to get the kind of data it gets for stocks or bonds. Crypto tax evasion remains a major issue for Washington policy makers even amid the recent downturn. Treasury and the IRS have struggled to quickly draft rules, which firms will use in collecting and reporting the information on their clients' trades.

This isn't a snag

[rsilvergun]

it's a warning to get your books in order before the hammer drops. Contrary to popular belief the IRS doesn't want to throw people in jail, they just want the money they're owed to run the country with. Money crypto bros owe more than just about anyone else since everything they have (from the cryptography to the Internet to the electricity) was built by and only exists because of the gov't.

Re:This isn't a snag

[alvinrod]

Someone's political friends aren't out yet. That's all it is. Once they're clear then who the fuck cares any more.

Re: This isn't a snag

[niftydude]

No they just realised that with the current downturn, most people are making taxable losses, and so this would actually reduce revenue for the IRS, not raise it

Re:

[awwshit]

Or you could have just paid your taxes like everyone else. Your house should already be in order.

Re:

[waspleg]

My CPA has been asking about crypto holdings for several years when filing because that's when the IRS started asking. I've never had any because I'm not in to scams or fraud. IRS considers that shit capital gains taxable. You better believe the big exchanges are/will be reporting everything.

IRS limitations

[swell]

The Internal Revenue Service suffered budget cuts and has a major backlog of work to do. I'm told that that means delays or neglect in investigating complex cases. Thus only simple cases like yours and mine will get scrutiny. The rich and the cryptobros get a break for a while.

Re:

[Virtucon]

The Internal Revenue Service suffered budget cuts and has a major backlog of work to do. I'm told that that means delays or neglect in investigating complex cases.

And this is bad how? Every year I typically get a letter from them, "you made a $1 mistake or such" and it comes back with "No taxes or penalties owed." I've had the same accountant for 10 years, same results.
The IRS is the sign of a corrupt and broken bureaucracy that needs to die a quick, horrible death.

Re:

[whitroth]

How bad? Because you're getting that letter, and they don't have the forensic accountants to go after billionaires and trillion dollar companies.

Re:

[whoever57]

And this is bad how? Every year I typically get a letter from them, "you made a $1 mistake or such" and it comes back with "No taxes or penalties owed." I've had the same accountant for 10 years, same results

Since I have never had one of these, perhaps you should consider finding a new accountant?

Re:

[Virtucon]

I think it's a rounding issue somewhere and oddly, she (accountant) says that it doesn't happen to her other clients.

Re:

[DarkOx]

Help me out with this one. I am normally the first inline to dump on the IRS and the ACA but ... I am generally curious about the actual harm here and I can sort of understand why its low priority.

To qualify for the health premium tax credits, I think you must be employed. I can understand someone preferring commercial coverage to Medicaid if they have a condition and prefer certain providers, drugs, treatments; but then you tell me they consume very little care, which would make me wonder why such a perso

Re:

[splutty]

I think we can pretty much ascertain that this is done completely on purpose.

If the IRS doesn't have the manpower to investigate complex cases, then that will mostly (not) affect the people that determine whether the IRS gets enough manpower in the first place..

Re:

[Anonymous Coward]

The man was arrested in 2019 for (sexual) coercion and involuntary servitude. This stuff sounds like the "sovereign individual" tax fantasy that some sketchy dirtbag handed out at a pool table in a bar in 1978 (not made up). You are either part of the fraud, or inexcusably gullible.

Re:

[Xenx]

tl;dr; whatever you think you know about US tax law, I can promise you you are wrong

This is probably the only part of what you said that holds up under scrutiny.

15 percent of zero

[iggymanz]

Margin calls are coming due for miners, they're selling off machines and coins to pay off loans and operating costs. This will obliterate all crypto coin by end of year.

There won't be anything left to tax after this farce of gambling tokens augers into the ground. There will be losses claimed, for sure.

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