How does form m-4868 impact taxes on digital currency investments?

3 answers

• Dec 17, 2021 · 3 years ago
  Form m-4868 is a tax form used to request an automatic extension of time to file an individual income tax return. When it comes to digital currency investments, form m-4868 can impact the taxation in several ways. Firstly, if you file form m-4868 and receive an extension, it also extends the deadline for reporting your digital currency investments. This means you have more time to gather all the necessary information and accurately report your gains or losses. Secondly, form m-4868 allows you to postpone the payment of any taxes owed on your digital currency investments until the extended deadline. This can provide some relief if you're facing a large tax bill. However, it's important to note that form m-4868 only extends the filing deadline, not the payment deadline. So, if you owe taxes on your digital currency investments, you may still be subject to penalties and interest if you don't pay by the original due date. It's always recommended to consult with a tax professional to ensure you're properly handling your digital currency investments and fulfilling your tax obligations.
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• Dec 17, 2021 · 3 years ago
  Alright, so here's the deal with form m-4868 and taxes on digital currency investments. This form is basically a way for you to get an extension on filing your tax return. And why would you need an extension? Well, maybe you've got a bunch of digital currency investments and you need some extra time to sort out all the details. With form m-4868, you can get that extra time. It's like a little gift from the IRS. But here's the catch - form m-4868 only extends the deadline for filing your return, not for paying any taxes you owe. So, if you've made some sweet gains on your digital currency investments, you still gotta pay up by the original due date. Otherwise, you might end up owing penalties and interest. So, don't forget to take care of your tax obligations, even if you get an extension with form m-4868. And hey, if you're not sure about all this tax stuff, it's always a good idea to talk to a tax professional. They'll help you navigate the murky waters of digital currency taxes and keep you out of trouble with the IRS.
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• Dec 17, 2021 · 3 years ago
  At BYDFi, we understand the importance of staying on top of your tax obligations when it comes to digital currency investments. Form m-4868 can play a role in this process. By filing form m-4868, you can request an extension of time to file your tax return, giving you more time to accurately report your digital currency investments. This can be especially helpful if you have complex transactions or multiple investments to account for. However, it's important to note that form m-4868 only extends the filing deadline, not the payment deadline. If you owe taxes on your digital currency investments, it's still important to make the necessary payments by the original due date to avoid penalties and interest. As always, we recommend consulting with a tax professional to ensure you're meeting all your tax obligations and maximizing your tax benefits.
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