The Internal Revenue Service known as the IRS recently announced the change of its deadlines about cryptocurrency taxes, which are now set for July 15. That said, if you are not ready to file your crypto taxes in a month, you should ask for an extension.
Also, the tax day this year, just like everything else, is different. The IRS rescheduled it to July 15, but there is little left to get your records together and file them. Everyone knows that the IRS is pushing hard to scrutinize crypto.
However, a new IRS question now appears at the top of Schedule 1 of your 2019 Form 1040 asking users if they received, sold, sent, exchanged or otherwise acquired any financial interest in a digital asset at any time during the year. In the cryptocurrency news, we can also see that IRS classifies crypto as property and any sale should produce a gain or loss.
Some analysts think that the IRS might be only surveying who is using crypto, you might guess, but a simple “yes” or “no” can turn out to be pretty important. This question could set people up for facing big penalties on any committed perjury.
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So, how do you file cryptocurrency taxes on crypto and what are the deadlines?
Well, the process is kind of automatic on request and incredibly easy to perform. Everyone should take advantage of it and possibly extend their dates. Doing so will give you a couple of extra months – but then again, there is no shame in an extension.
Millions of people and traders following the Bitcoin news are processing taxes every year and everyone can automatically get one until October 15 by filing a short form electronically or by mail. It does not even require a signature and could not be any easier.
What is also notable is the fact that extensions allow time to gather records and while no one wants the Internal Revenue Service (IRS) knocking on their door, cryptocurrency taxes should be on everyone’s priority right now. To extend your tax application, you can submit a Form 4868 and ask your tax return preparer, use commercial software or do it yourself electronically.
*The text applies to all residents of the United States, since the IRS is an active entity in this country.
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