It’s not often we want to hear from the IRS…
Usually, when the tax man speaks it’s not good news. He’s either raising rates or sending bills.
Tax fraud in the U.S. is rampant. The tax code is confounding. And have you ever called the IRS for tax help? The wait can last hours.
So it’s no wonder a Pew Research survey found Americans dislike the IRS more than any other federal agency.
Dealing with the IRS can be a headache… especially for cryptocurrency investors.
Over the years, we’ve received hundreds of emails from Daily readers asking about taxes on their crypto profits. It’s one of the most frequent questions we receive.
We share that frustration. The IRS has been useless when it comes to providing direction. Even trusted certified public accountants (CPAs) struggle when answering the most basic crypto-related tax questions.
But the tide is turning…
Last week, the IRS announced it will issue crypto tax guidance for the first time since 2014.
Here’s what IRS Commissioner Charles P. Rettig wrote in a letter to Congress:
I share your belief that taxpayers deserve clarity on basic issues related to the taxation of virtual currency transactions and have made it a priority of the IRS to issue guidance.
This is good news for crypto investors…
You see, the IRS just acknowledged cryptos as a sustainable asset class. The agency wouldn’t waste time on guidance if it didn’t think cryptos would be around for the long haul.
In today’s essay, I’ll show what this all means… and tell you about a crypto tax solution you can use while waiting for new IRS guidance.
A Legal Framework for Cryptos
Rettig’s letter was a response to the Congressional Blockchain Caucus. The caucus plans to reintroduce a bill this year, to reform how the tax code treats cryptocurrencies. But it first wanted clarification from the IRS.
Rettig said the IRS will publish the guidance “soon” and that it’s a “priority.”
This announcement isn’t just good for taxpayers. It also gives institutions more confidence to build and invest in crypto projects in the United States rather than abroad.
Here’s what world-renowned cryptocurrency expert Teeka Tiwari told his subscribers about the news last week:
Now, we don’t know what “soon” means in IRS language. Is it next month? Is it the end of the year? We don’t know… But what we do know is, the IRS is working on guidance on acceptable methods for calculating cost basis and cost-basis assignment, and determining the tax treatment of forks.
This is long overdue. And as an American citizen, I’m excited to see the IRS finally tackle this and let us know what the rules of the road are in terms of taxes.
Like Teeka, we’re excited that we’ll finally have new tax guidance for our crypto holdings.
(Teeka will go over the IRS announcement and other major news in the crypto space during his special live Q&A at 8 p.m. ET tonight. He’ll also reveal a new catalyst he believes could send bitcoin soaring even higher this year. Click here to register for free.)
In the meantime, we’ve found a tax solution for crypto investors while we wait for the IRS to clarify its rules…
The Simple Crypto Tax Solution
ZenLedger is a tax software for cryptocurrency investors. It makes it easy for you to import cryptocurrency transactions, calculate gains and income, and autofill tax forms.
Further, ZenLedger prepares a number of useful documents such as capital gains reports and income reports, and it’ll keep adding more in the future.
It covers all the major crypto and fiat currencies. And it works with major crypto exchanges such as Binance, Bittrex, and Poloniex.
ZenLedger also plans to release a tool that shows you which coins are in the black and which are in the red, by exchange. This will allow you to sell losers and harvest tax-loss assets.
This is the only accounting program we’ve found that covers all coins, all major exchanges, and most major wallets—and provides actual, live customer support.
To learn more about ZenLedger, click here.
Full disclosure: Neither the Palm Beach Research Group nor its affiliates receive any direct or indirect compensation for bringing you this offer.
Analyst, The Palm Beach Daily
P.S. Is the Crypto Winter over? What can you expect for the rest of 2019? What’s Teeka hearing from his insider network?
We know you have plenty of questions about the current crypto rally… That’s why tonight at 8 p.m. ET, Teeka’s holding his first crypto event of the year… and devoting the entire time to answering your questions.
Now, Teeka can’t give personalized investment advice, but he’ll go as long as it takes to cover everything.
To reserve your spot and submit your questions to this free event, click here and enter your email address…
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