What happens if you don't report cryptocurrency earnings on your taxes?

3 answers

• Nov 28, 2021 · 3 years ago
  If you don't report your cryptocurrency earnings on your taxes, you may face penalties and legal consequences. The IRS treats cryptocurrencies as property, so failing to report your earnings is similar to not reporting income from other sources. This can result in fines, interest charges, and even criminal charges in some cases. It's important to accurately report your cryptocurrency earnings to avoid these potential consequences.
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• Nov 28, 2021 · 3 years ago
  Not reporting your cryptocurrency earnings on your taxes is a risky move. While it may be tempting to try and hide your earnings, the IRS has been cracking down on cryptocurrency tax evasion in recent years. They have implemented new tools and strategies to track down unreported earnings, so the chances of getting caught are higher than ever. It's always best to be honest and transparent with your taxes to avoid any legal trouble.
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• Nov 28, 2021 · 3 years ago
  If you don't report your cryptocurrency earnings on your taxes, you may be subject to an audit by the IRS. During an audit, the IRS will thoroughly review your financial records and transactions to ensure you have accurately reported your income. If they find discrepancies or unreported earnings, you may be required to pay back taxes, penalties, and interest. Additionally, an audit can be a time-consuming and stressful process, so it's best to avoid it by reporting your cryptocurrency earnings correctly.
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