Twitter Survey Reveals Crypto Investors Won’t Report Taxes
April isn’t just the time for flowers and sunshine after a cold winter; it’s also the time for citizens to report their taxes. April is the deadline for taxes in the UK, US and Canada. However, as suggested by Twitter the vast majority of investors that have invested into cryptocurrency will avoid handing over certain critical pieces of information regarding their taxes. This is due to a tax liability that has been placed on cryptocurrency investment in these three countries. 81% of respondents to the survey stated that they’d avoid informing the government on the status of their crypto investments.
Tax Authorities in the United Kingdom, the United States and Canada have had a hard time figuring out what to do in regarding taxing cryptocurrencies. They’ve gone as far as to provide live-chat help desks, instruction pages on how to do crypto taxes and have created publications that get sent out with tax packages in the mail. Regardless of their efforts, trying to figure out how to complete crypto taxes is still a confusing mess which often resulting in investors misinforming government authorities in the first place. Tax professionals working at companies like H&R Block will be just as confused as you are. The only for sure thing that is stated is the liability, meaning you are taxed a higher amount.
Crypto Wendy O started this poll on Twitter; it went viral and received submissions from investors outside of these three countries. Only 5% of the people who submitted an answer revealed that they would start this confusing process next week.
Crypto Wendy, a YouTuber, in a recent video revealed that you don’t have to detail every trade you’ve made. Instead, tell how many gains or net losses you have had. The issue starts to apply to people who have entered the crypto mining business where token swaps, transfers and wash sales all play a factor.
Evading taxes is a serious crime that in the United States, the United Kingdom and Canada are punishable with up to 25 years in prison. Furthermore, once the prison sentence has been served those taxes will still need to be paid with the accumulated interest obtained over 25 years. It’s in the best interest of investors to complete their taxes and work with the government if any discrepancies come to light.
Reporting crypto taxes is confusing, and it shouldn’t be this difficult. However, by using certain support services, it can become easier. Regardless of the difficulties, those who don’t pay their crypto taxes will face severe punishment as the UK, US and Canada continue to regulate the cryptocurrency market.