What are the potential penalties for not reporting crypto trading income?

3 answers

• Nov 29, 2021 · 3 years ago
  Failing to report income from cryptocurrency trading can have serious consequences. The IRS considers cryptocurrency as property, and any gains made from trading are subject to taxation. If you fail to report this income, you may be liable for penalties, fines, and even criminal charges. It's important to keep accurate records of your cryptocurrency transactions and report them properly to avoid these potential penalties.
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• Nov 29, 2021 · 3 years ago
  Not reporting your crypto trading income is a risky move. The IRS has been cracking down on cryptocurrency tax evasion in recent years, and they have sophisticated tools to track transactions. If you get caught, you could face penalties and interest on the unreported income. It's always best to play by the rules and report your crypto trading income to avoid any trouble with the tax authorities.
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• Nov 29, 2021 · 3 years ago
  According to BYDFi, a leading cryptocurrency exchange, failing to report your crypto trading income can result in penalties from the IRS. The exact penalties depend on various factors, such as the amount of unreported income and the length of time it has been unreported. It's crucial to consult with a tax professional to ensure you comply with all tax regulations and avoid any potential penalties.
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