USA and crypto currencies: Tax payment is a rarity

On the US online platform Credit Karma, out of 250,000 taxpayers, only 0.04% stated that they would pay tax on their profits from trading in crypto currencies. According to current estimates, $25 billion in taxes are due on digital currency profits in the US alone. As a result, countless users have simply dropped some data under the table when it came to reporting revenues.

Out of 250,000 users of the financial services provider Credit Karma, fewer than 100 have admitted to declaring revenues from crypto currency trading in their 2017 tax returns. In the USA the tax must be submitted earlier than in Germany, the deadline already ends on April 17. In Germany there Bitcoin Evolution is still time until May 31 without a tax consultant. If you submit your tax return to Elster Online, you have two more months to submit it.

Bitcoin Evolution and Tax

In the USA, all crypto sales are subject to capital tax. Credit Karma Tax assumes that the information about crypto profits is only submitted at the last minute due to the complexity. Or not at all. At first glance, taxation does not seem as complicated as it might seem. In addition, the US Internal Revenue Service (IRS) has long been wide awake when it comes to this issue. A few months ago, the US online trading centre Coinbase was to be obliged to provide a great deal of information in Bitcoin Evolution order to find out about US tax evaders. When the operator refused, the IRS went to court. Instead of disclosing at least 500,000 account data, Coinbase was now obliged to disclose the most active 13,000 users.

Paying taxes must not be a coincidence
The Düsseldorf lawyer and book author Dr. Joerg Andres cannot understand why Bitcoin profiteers still brag about not paying tax on their crypto profits. Andres describes it as “highly risky” to withhold this income from the tax office. He believes that it is only a matter of time before the tax offices catch up. They would soon be able to track down these revenues as well. Even if it takes some time, employees of tax offices at Coinbase & Co. can access the data of German taxpayers as part of a request for information. Just because an online trading centre is located abroad, the tax offices can still compare the information in the tax return with the credit balance and the activities of the respective wallets. Prof. Dr. Andres comments: “Anyone who still believes in the myth of the complete anonymity of blockchain activities should not be surprised if good advice literally becomes expensive afterwards. Anyone who in the past has not yet completely fulfilled his or her reporting obligations to the tax office should do so as soon as possible. There is still a good chance that such omissions will be dealt with without penalty.”