Tax Hysteria Over Crypto Likely Overblown ?
First thing that caught my eye in the article was that the IRS has really cut-down on audits due to budget cuts – that is a good thing, rather have several root canals than to go at it with the IRS!
Tax Hysteria Over Cryptocurrencies Likely Overblown, IRS Audits Drop to Lowest Level in Decades
This past summer, the IRS caused waves when it announced that it would be sending some 10,000 notices to cryptocurrency traders. However, a recent report finds that due to cuts, IRS audits have plummeted to their lowest level in at least four decades.
Hysteria over the IRS hammer coming down on cryptocurrency traders may be overblown after recent reports indicate that the tax agency is a shell of its former shelf.
The Wall Street Journal finds that audits plummeted to only 0.45% of all personal income tax returns in 2019, the lowest level in at least four decades. This marks the eighth straight year of decline which has accelerated under President Trump’s administration. Currently, the IRS has fewer auditors than at any point since World War II.
This comes after a tumultuous year for cryptocurrency traders dealing with the stress of audits. This summer, the IRS sent up some 10,000 letters to individuals requesting they clarify whether they received, sent, or exchange any cryptocurrency since 2013. Then, in October, BeInCrypto reported that a source from the IRS confirmed that a “new batch of audit notices” would be sent out shortly. There was no follow-up to this notice, however, and it’s unclear how many individuals were audited if any.
Full article here: