According to a recent survey conducted shows that US investors have made or lost money during or after the bitcoin hype, with a large percentage of them not realizing that bitcoin could be taxable.
Lack of Reports
By not reporting income, investors will have to be audited and pay penalties plus interest. Furthermore, taxpayers who don’t report their losses may also lose out on valuable deductions, which is quite unfortunate for them as U.S. investors who did sell their bitcoin lost a total of $1.7 billion collectively.
Investors who were asked on whether they planned to report their bitcoin losses or gain during the upcoming tax season, only half of those said they would, a third of those being people reporting as losses.
One of the major reasons why US investors didn’t bother to report their gains or losses was due to them believing they didn’t have to do so because of how little lost or gained. A third of them didn’t believe they were required to report their gains and losses. And lastly, a quarter of them didn’t know the requirements necessary to make a report for gains and losses.
At the end of the day, this just shows how ignorant some investors are when it comes to reporting their cryptocurrency to the proper authorities. It’s not fair for any of us to label them criminals for not paying their taxes, it just has to do with a lack of knowledge on how to do so or if they must do so.
information on the importance of reporting their gains or losses must become more knowledge among bitcoin investors and how to pull it off as well, regardless of how minuscule their gains may have been. After all, if you or anyone else forgot to report their crypto gains, it could lead to some serious penalties or criminal prosecution that will definitely haunt you for the rest of your life.