The high demand for CPAs has risen even further, and the complexity of the tax landscape increased with virtual currencies. Cryptocurrency is one of the hottest topics worldwide, contributing to the soaring prices of BTC, ETH and other currencies in the world.
While the earning looks lucrative on paper, the crypto taxes can often be a tough nut to crack.
Many traders evidently take enough advantage of the constant fluctuations. They buy the dip, sell the uptrend and repeat. Unfortunately, all of these events are taxable.
According to an IRS chief, the country is losing trillions of dollars for unpaid taxes every year. This is why several subpoenas that existed against Coinbase, Kraken and Poloniex in the US should be under the view of the IRS.
There have been multiple headlines of how IRS officials seized billions of dollars in cryptocurrencies regarding tax fraud.
As the number of crypto investors rises every day, about 55% of the American investors are believed to hold BTC worth millions. According to the IRS, users need to specify their personal details, including the location, which cannot be missed. They need to check out the form and approve the boxes as required based on their crypto activity.
According to him, the crypto assets will be considered as a property of the users. They must recognize and report every taxable gain and loss, failure of which can lead to tax audits, interest payments and penalties.
This year the industry of CPAs has been overworked and underpaid, which resulted in the decline of this career. This means users will have a tough time finding a suitable CPA for their taxes.
With the offerings of Accounting, a cryptocurrency software, users can now access all their data in one centralized location, which can easily calculate all the wins and losses of the trader whilst classifying all the transactions accordingly. This eliminates the need to hire a CPA anymore as traders can rely on this application to calculate their earnings in mere seconds. Traders can now customize their tax reports however they like without any restrictions!