Americans didn’t file cryptocurrency transaction to tax authorities

Less than 100 people out of 250,000 reported such transactions in federal tax files
16 February 2018   657

The Internal Revenue Service considers cryptocurrency as a property. With that position any gains and losses in cryptocurrency should be treated as capital gains and losses. Credit score startup Qualtrics did a survey last month and the results are as follows: 57% of approximately 2,000 Americans polled have made some gain out of cryptocurrency. The study also concluded that nearly half of that percentage understood how the cryptocurrency would affect their taxes.

In 2017 cryptocurrency market surged enormosly in price. Yet it is still unclear how many Americans hold the cryptocurrency. And the legislation for the virtual currency is still building up. According to the earlier article, from January 1, 2018 all cryptocurrency trading will become taxable due to a new US tax code signed by D.Trump.

On top of that, on February 10, 2018 IRS has set up a special team of criminal agents to investigate possible tax evasion cases, according to the recent news. And that is 2 months prior the tax filing deadline. However, Americans with complex tax situations do tend to file closer to the deadline.

Given the popularity of bitcoin and cryptocurrencies in 2017, we’d expect more people to be reporting.

 

Jagjit Chawla

General manager for Credit Karma Tax

US Authorities to Sell $4.3M Worth Seized BTC

As reported, the Bitcoins were seized during different federal investigations
18 October 2018   82

The US Federal Penitentiary and Marshals Service has announced an auction, during which 660 Bitcoins will be sold, previously confiscated by law enforcement agencies. The current market value of the coins put up for sale is about $ 4.3 million, CoinDesk reports.

Bitcoins offered for sale were seized during federal criminal, civil and administrative investigations.

The auction will be held on November 5, and to participate in it, you must register no later than October 31 and make a deposit of $ 200,000.

The trades will be divided into two parts and include the sale of six blocks of 100 BTC and one more block of 60 BTC. Auction participants will not be able to view other people's rates or change their own.

The Office clarified that part of the assets put up for auction includes Bitcoins, which were seized during the recent investigations into the cases of the traders Teresa Tetley and Thomas Mario Costanzo. Teresa Tetley was sentenced in July to a year in prison on charges of trading in cryptocurrency without the necessary license and laundering money obtained from drug trafficking.

The Marshals do not report which part of the bitcoins seized from Tetley and Costanzo is put up for auction, however, it was previously known that 40 BTC were withdrawn from the first, and 80 BTC from the second.

Two previous major auctions for the sale of confiscated bitcoins were held in the United States in January and March of this year. In the first case, 3813 BTC was sold, in the second - 2170 BTC.