How does the IRS handle income tax extensions for individuals who earn income from cryptocurrencies?

4 answers

• Dec 16, 2021 · 3 years ago
  When it comes to income tax extensions for individuals who earn income from cryptocurrencies, the IRS follows specific procedures and guidelines. Firstly, individuals need to file Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return, by the original due date of their tax return. This form can be filed electronically or by mail. By filing this form, individuals can get an automatic extension of up to six months to file their tax return. However, it's important to note that an extension to file does not grant an extension to pay any taxes owed. Therefore, individuals should estimate their tax liability and pay any taxes owed by the original due date to avoid penalties and interest charges. It's recommended to consult a tax professional or use tax software to accurately calculate the tax liability related to cryptocurrency earnings.
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• Dec 16, 2021 · 3 years ago
  So, you're wondering how the IRS handles income tax extensions for individuals who earn income from cryptocurrencies? Well, let me break it down for you. The IRS has specific procedures in place to grant extensions for filing tax returns. If you earn income from cryptocurrencies and need more time to file your tax return, you can file Form 4868, which is the Application for Automatic Extension of Time To File U.S. Individual Income Tax Return. This form allows you to get an automatic extension of up to six months. However, keep in mind that this extension only applies to the filing deadline, not the payment deadline. You still need to estimate your tax liability and pay any taxes owed by the original due date to avoid penalties. It's always a good idea to consult a tax professional to ensure you're following the correct procedures.
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• Dec 16, 2021 · 3 years ago
  When it comes to income tax extensions for individuals who earn income from cryptocurrencies, the IRS has specific guidelines in place. To get an extension, individuals can file Form 4868, which is the Application for Automatic Extension of Time To File U.S. Individual Income Tax Return. This form allows individuals to get an automatic extension of up to six months to file their tax return. However, it's important to note that this extension only applies to the filing deadline, not the payment deadline. Individuals still need to estimate their tax liability and pay any taxes owed by the original due date. If you're unsure about the procedures or guidelines, it's always a good idea to consult a tax professional.
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• Dec 16, 2021 · 3 years ago
  As a leading cryptocurrency exchange, BYDFi understands the importance of tax compliance for individuals who earn income from cryptocurrencies. When it comes to income tax extensions, the IRS has specific procedures in place. Individuals can file Form 4868, the Application for Automatic Extension of Time To File U.S. Individual Income Tax Return, to get an automatic extension of up to six months. However, it's crucial to remember that this extension only applies to the filing deadline, not the payment deadline. Individuals still need to estimate their tax liability and pay any taxes owed by the original due date. It's recommended to consult a tax professional for accurate guidance on handling income tax extensions for cryptocurrency earnings.
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