The IRS is cracking down on reporting taxable cryptocurrency activity.
- In 2017, the IRS estimated that the crypto tax gap represented a full 10% of the overall national tax gap. The IRS wants their share.
- The IRS has ordered crypto exchanges and trading platforms to report tax forms impacting the 2022 tax season and beyond.
In a new analysis released by Barclays, managing director Joseph Abate estimated that the tax gap from crypto trades — the difference between how much tax revenue the IRS collects and how much it is owed — may be as much as $50 billion per year.
Barclays made its calculation by extrapolating data referenced by the IRS in 2017 to estimate that the current crypto tax gap represents a full 10% of the overall national tax gap.
However, the gap is likely much larger, according to Barclays. That’s because “much of the DeFi activity occurring today did not exist four years ago.
Tax Resolution will help everyday Americans who owe back taxes from lost employment during covid, business owners who weren’t able to make payroll taxes (social security & medicare), crypto investors