What Happens If You Can’t – or Don’t – Pay Your Cryptocurrency Taxes?

2018-04-10T06:09:29+00:00 Cryptocurrency|

Some coin traders were riding high last year, making fortunes on a crypto market that saw Bitcoin prices skyrocket to over $18,000. However, now that tax season is here, a few investors are experiencing sticker shock on their tax bills.

2017 is in the books at this point, and little can be done about tax liability incurred in the past. However, Happy Tax offers tax advice and planning services that can help you avoid costly mistakes in the future. Happy Tax employs the most skilled and experienced Certified Public Accountants (“CPA”) that have been specifically trained in the rules and regulations applies to cryptocurrency taxes.  If you invest in cryptocurrencies, the professionals at Happy Tax can help you plan your transactions in a manner that minimizes your tax liability.

Not Paying Your Taxes is Extremely Risky

Don’t be lured into thinking that you can avoid paying your cryptocurrency taxes by not reporting them on your tax return. Despite the notion that “everybody” cheats on their taxes, the IRS employs complex software programs and thousands of people specifically trained to detect discrepancies in income tax filings. Given the recent attention the agency has committed to the cryptocurrency community, your likelihood of getting caught cheating on your taxes is getting higher every day.

If you make taxable income from cryptocurrency and you don’t include it on your tax return, you could get hit with serious fees and penalties. Of course, you will have to pay taxes on the income you failed to report, as well as any additional tax liability incurred if it bumps you into the next tax bracket. On top of that, the IRS may impose an inaccuracy penalty and a late fee on the amount you owed. And that’s just for accidental or negligent omissions of income. Willful tax evasion is a crime that can land you in federal prison.

The IRS has broad authority to collect the money you owe in back taxes going back up to six years. The agency can make you forfeit your tax refund or seize property to make up for the difference. They can even revoke your passport or garnish your wages.

A Good Tax Professional Saves You Money

Internal Revenue Service is bearing down on the cryptocurrency community, and market volatility has wiped out many of the gains that investors realized in 2017. As a result, more and more virtual currency users are getting worried about tax liability. No doubt, some are even tempted to try and evade tax liability by moving or hiding their crypto assets.  However, as you can see, this is a very dangerous game.

A good cryptocurrency accountant will make sure you’re properly reporting your cryptocurrency trades this year. They can also help you to make the most out of tax credits and deductions you may be entitled to. Happy Tax offers expert tax advice and planning services specifically focused on the needs of cryptocurrency investors. As a result, the cryptocurrency-trained Certified Public Accountants at Happy Tax have all the tax advice and planning services you need to file your returns properly this year.

About the Author:

Speaker. Author. Visionary. Mario Costanz amongst many other things excels in these categories. As a longtime avid blockchain and cryptocurrency enthusiast, Mario saw a need for quality tax preparation in the crypto trading community and launched CryptoTaxPrep.com as a division of Happy Tax. CryptoTaxPrep.com has positioned itself as the industry leader in cryptocurrency tax preparation. Mario was recognized by Forbes as one of the “Gutsiest Entrepreneurs” in the world and holds many rankings and accolades with Entrepreneur Magazine, Accounting Today, and many Blockchain/Crypto industry leaders. Email Mario at mario@happytax.com for more info or marketing@happytax.com to book for a media appearance.