The Internal Revenue Service (IRS) is set to impose strict tax rules on crypto holders this year. According to Bitcoin analyst and former high ranked investigator Don Fort, the agency will be strengthening their crypto tax rules towards ensuring that all crypto investors are taxed accordingly. Fort further discloses that the IRS is adopting this measure as part of its strategies to figure out and penalize digital assets owners who are unwilling to declare their holdings.
Crypto exchanges want to work with the IRS
Having informed the public about the collection process last year, Fort believes IRS’s next move is to enforce crypto taxes strictly. As part of its mission to gather all crypto users’ information, the IRS has discussed all exchange platforms for updated data. In 2018, the collection body received data of about 13,000 users from Coinbase, while the agency equally reached out to Luxembourg-based exchange platform Bitstamp for more data.
According to the former IRS Investigator and crypto expert, many exchange platforms are more than willing to work with the agency because they believe it will enhance their desire to see an end to crypto tax defaulters. He equally advised cryptocurrency users to do the needful by declaring their exact crypto assets. He urged them not to underestimate the government’s chances of getting at anyone who fails to obey the new collection rules. Most of their data are now being monitored by the Internal revenue service.
More Countries Set To Tax Crypto Industry
Wrapping up his interview, Fort revealed more countries are set to introduce more taxes into the crypto industry this year. The crypto space is fast becoming a force to reckon with, and many governments are set to pay more attention to activities carried out by investors and exchange platforms.
It should be recalled that India is presently thinking of imposing Good and Service Tax (GST) on any transaction involving a huge amount of Bitcoin. Should the Asian country continues with its plan, the government will receive at least 18% of all transactions, which include the transfer of the massive amount of Bitcoin between two or more users
In the same vein, the Israeli government, via its Tax Authority (ITA), is also looking at the possibility of increasing its revenue by taxing the cryptocurrency space. It is believed that the government has charged all digital asset owners to declare their world to help the government tax them appropriately.
Like the two countries, Russia is equally following the same path as the European nation is set to impose a high tax on digital assets owners. The report has it that The Bank of Russia is considering taxing crypto miners to generate revenue from the crypto world. Considering the recent turn of events, Ford tipped many countries to follow the same path due to the popularity the industry keeps getting every day.
Meanwhile, experts expect a cryptocurrency to gain more investors in 2021. In one of his recent interviews, Gouldman believes the adoption of digital currency as a means of the transaction will be higher than ever because many people are getting to know more about the industry.