Crypto Adoption Success Draws the Eye of the IRS
Let me tell you how it will be
There's one for you, nineteen for me
-The Beatles, “Taxman”
Nothing says success like the tax man wanting his cut. The IRS has updated its taxation and reporting requirements and broadened its scope to everyone who has dealt with digital assets, according to Forbes. The report says that now all investors who “received, earned, transferred, or sold digital assets” in 2022 with the purpose of generating revenue are subject to the new requirements.
The document states:
“At any time during 2022, did you: (a) receive (as a reward, award or payment for property or services); or (b) sell, exchange, gift or otherwise dispose of a digital asset (or a financial interest in a digital asset)?”
Crypto gains earned from purchases held less than a year are subject to regular income tax, which varies between 10% to 37%. Revenue generated from digital assets held longer than a year is taxed between 0% to 20%, depending on the income level. The IRS also changed the term “virtual currencies” to “digital assets” in all its dealings, and the update also includes NFTs among the digital assets.
The report also says the IRS ramped up its Criminal Investigation division, onboarding hundreds of new agents for its digital assets and cybercrime division.