Nicola
Sat Aug 24 2024
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7 answers
1590
How does IRS know you sold crypto?
How does the IRS actually know when an individual has sold cryptocurrency? Is there a specific reporting system in place that tracks these transactions? Or do they rely on self-reporting from taxpayers? And if self-reporting is the primary method, how do they ensure compliance and catch those who may be trying to avoid paying taxes on their crypto gains? Are there any specific rules or regulations that taxpayers need to be aware of when it comes to reporting crypto sales to the IRS?
BenjaminMoore
Thu Jun 20 2024
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5 answers
1715
How does IRS know if I sold crypto?
Could you elaborate on how the Internal Revenue Service (IRS) typically determines if an individual has sold cryptocurrency and what methods they employ to identify such transactions? Given the anonymous and decentralized nature of crypto, I'm curious about the steps the IRS takes to ensure compliance with tax regulations in this space. Do they rely on self-reporting or do they have mechanisms to track and analyze blockchain transactions? Furthermore, what are the potential implications for those who fail to accurately report crypto sales to the IRS?
