Inflation Reduction Act: U.S. Crypto Investors Targeted by IRS
The U.S. Internal Revenue Service is targeting crypto investors with the Inflation Reduction Act. This act requires investors to report any capital gains or losses made from the sale of crypto assets to the IRS. It also requires investors to report their total holdings of crypto assets, including any gains or losses from the sale or exchange of those assets.
The Inflation Reduction Act is part of the IRS’s effort to bolster compliance with federal tax laws and ensure that crypto investors are paying their fair share of taxes. The IRS has also recently announced a new enforcement initiative, dubbed the “Virtual Currency Compliance Campaign,” which aims to identify and pursue non-compliance with federal income tax laws related to virtual currencies.
The Inflation Reduction Act is an important step in the right direction for the IRS and crypto investors alike. It ensures that crypto investors are being held accountable and that the IRS is doing its part to ensure that the U.S. tax system remains fair and effective.
