According to Reuters, fewer than 100 of the 250,000 taxpayers (or 0.04%) who filed federal tax returns this year using Credit Carma reported income from crypto transactions.
Credit Carma Tax CEO Dyagjid Chawla is not surprised by the low number of reported cryptocurrency transactions, as “citizens with more complex tax situations” tend to file returns towards the end of the tax season. “Given the rise of cryptocurrencies in 2017, we can expect many more people to report these types of transactions,” he said confidently.
The US tax filing period began on January 29, with the filing deadline set to April 17.
The IRS, which began taxing Bitcoin in 2014, treats the digital currency as private property. Thus, the IRS considers the purchase, sale, exchange, and mining of cryptocurrency as taxable events.
Independent cryptocurrency trader Brandon Williams told CNBC that the low number of returns reported by Credit Carma is due to the fact that “it is quite difficult to accurately report cryptocurrency profits and losses.” With two or more trades per day, it takes at least three to four hours every two weeks to record profits and losses, he said.
According to https://cointelegraph.com
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