Recently, President Biden signed the $1.2 Trillion Infrastructure Bill into law, which will invest in America’s infrastructure. You might be thinking, “What does the Infrastructure Bill mean for my crypto?” The Infrastructure Bill does not contain much that affects taxes, but it does have a cryptocurrency provision if you are one of the millions who have jumped into the crypto investing craze.
The New Crypto Provision
The measure will not affect your taxes in 2021, and it will not take effect until 2023. However, beginning in 2023, the legislation would require brokers to record digital asset transactions to the Internal Revenue Service (IRS). It would also force companies to record cryptocurrency transactions worth more than $10,000, the cash transactions must be reported to the IRS.
Do I Still Have To Claim My Sales Transactions If I Sold Crypto in 2021 And My Broker Was Not Obligated To Record My Transactions?
Yes, the IRS continued to publish cryptocurrency guidelines, first in 2014 and then again in 2019. According to the IRS, cryptocurrency or virtual currency is classified as property for income tax purposes, therefore any gains or losses on cryptocurrency sales must be reported just like stock sales.
Resolve Your Tax Bills
If you’ve found yourself in a nasty mess with the IRS, take a deep breath. For taxpayers who may have difficulty paying off an excessive amount of tax debt, there’s a new and improved relief program that consolidates many major relief programs into a one-size-fits-all assistance program. Any issues regarding back taxes, unfiled years, or any other tax-related problems may be solved through one program; the IRS Fresh Start Program!
How Simple Is Qualifying?
Considering that the Fresh Start Program is a federal program, you would think meeting the qualifications may be very difficult, but really, it’s a lot simpler and quicker than you think. Take the following steps in order to find out if you are eligible in as little as 3 minutes.
- Fill out some basic information about yourself and your back taxes here.
- Have a representative reach out to you to discuss your eligibility.
- Go through the enrollment process and finally reduce or eliminate your tax liabilities.