Last week, the United States Internal Revenue Service sent another round of letters to crypto traders called CP2000. These notices were sent to traders of some crypto exchanges due to inconsistencies found in their tax reports. Using the information provided by third-party systems — such as crypto exchanges and payment systems — the IRS has been able to determine the amounts traders owe and included the amounts in dollars in the notices. Individuals who have received these notices are required to pay within 30 days, starting on the delivery date indicated in the letter. Related: IRS Crypto Reporting Letter: A …

Evan Kuhn, the co-founder of Toronto-based cryptocurrency exchange Coinberry, has claimed Bitcoin (BTC) is more efficient for paying taxes than bank cards. As real estate news outlet Mansion Global reported on Aug. 22, Kuhn said his company takes much lower fees than the ones that card institutions impose on their clients, adding: “A credit card company charges a 3% fee. [...] Our fee is .5%, so that’s a lot more beneficial for the municipalities.” Bitcoin transaction fees six times lower than credit cards Coinberry acts as an intermediary because local municipalities are not authorized to hold or accept cryptocurrencies due …

A Supreme Court judge in British Columbia (BC), Canada, has denied a motion to set aside an asset freeze, which was requested by the defendants in a multimillion dollar cryptocurrency fraud case. The defendants had filed to set aside an interim preservation order that was issued by the British Columbia Civil Forfeiture Office in order to prevent case-related assets from being sold or accumulating debt. Vancouver news daily The Province reported the ruling on Aug. 19. According to the report, the defendants, Lisa Angela Cheng and Kevin Patrick Hobbs, stand accused of committing fraud, tax evasion and money laundering. Alleged …

Society is now witnessing the implementation of digital currencies, artificial intelligence (AI) and blockchain technology worldwide. These new digital technologies necessitate very high consumption of electric energy, which is currently produced with coal and fossil fuels that have adverse environmental effects. A global shift toward green energy will require the removal of the technological/infrastructural, financial and regulatory/tax-policy barriers. In this series, we evaluate the tax, digital technology and solar policies (including a space solar power satellite) of the top carbon dioxide-emitting countries. In 2009, Japan — the Land of the Rising Sun — undertook important initiatives that set the tone …

The national tax authority of New Zealand, the Inland Revenue Department (IRD), has recently published binding rulings and guidance for salaries and bonuses paid in crypto, made under s 91D of the country's Tax Administration Act of 1994. This ruling applies only to salary and wage earners and not to self-employed individuals, and only for services performed by an employee for a fixed amount and as a regular part of his/her remuneration. While some may find this as proof that New Zealand has officially declared that income paid in cryptocurrencies is legal, the future of crypto adoption is not as …

The IRS has begun sending letters to people with digital currency transactions who may have failed to report income and pay taxes, or who did not report their transactions properly. By the end of August, more than 10,000 taxpayers will receive the letters, targets the IRS says it obtained through various ongoing IRS-compliance efforts. According to the head of the IRS, Commissioner Chuck Rettig: "Taxpayers should take these letters very seriously by reviewing their tax filings and when appropriate, amend past returns and pay back taxes, interest and penalties. The IRS is expanding our efforts involving virtual currency, including increased …

New Zealand's tax authorities have ruled that income in cryptocurrencies is legal and provided guidance on how exactly it should be taxed. In a tax information bulletin published on July 4, the New Zealand Inland Revenue Department summarized the provisions of the public ruling, made under s 91D of the country's Tax Administration Act 1994. Crypto used must be “money-like” to be taxed Specifically, the guidance on the income tax treatment of crypto assets applies to payments in crypto that form part of the employees’ regular salary and are fixed at a predetermined amount or rate — rather than, for …

Coming every Sunday, Hodler’s Digest will help you track every single important news story that happened this week. The best (and worst) quotes, adoption and regulation highlights, leading coins, predictions and much more — a week on Cointelegraph in one link. Top Stories This Week U.S. Federal Reserve launching payment system, crypto bulls nonplussed The United States Federal Reserve left some crypto enthusiasts unimpressed this week when it unveiled plans to release a real-time payments and settlements service. Known as FedNow, it is hoped the infrastructure will lead to faster transactions 24 hours a day, seven days a week. Presently, …

A tax bill seeking to allow the exclusion of gain or loss on like-kind exchanges of virtual currency has been introduced in the United States House of Representatives. To amend the Internal Revenue Code of 1986 The bill, dubbed the “Virtual Value Tax Fix Act of 2019,” was initially introduced by Representative Ted Budd (NC-R) on July 25 and referred to the Committee on Ways and Means. The bill seeks to introduce amendments to the Internal Revenue Code of 1986, which specifically determines: “No gain or loss shall be recognized on the exchange of real property held for productive use …

The United Kingdom’s tax, payments and customs authority, Her Majesty’s Revenue & Customs (HMRC), has reportedly requested that digital currency exchanges provide it with information about customers’ names and transactions aiming to identify cases of tax evasion. Crypto exchanges come under fire According to fintech-focused media outlet Coindesk, industry sources said that the agency has sent letters to at least three crypto exchanges in the U.K., including Coinbase, eToro and CEX.io, requesting that they provide lists of users and transaction data. HMRC is reportedly aiming to cooperate with crypto exchanges in a bid to identify individuals who evade taxes. According …

Israeli Bitcoin (BTC) investors are unable to pay their taxes as banks do not accept deposits obtained from cryptocurrencies. Israeli banks freeze up the minute they hear Bitcoin Israeli newspaper Haaretz reports on Aug. 6 that local crypto investors are unable to deposit the returns of their Bitcoin investments into bank accounts due to money laundering and terrorist financing concerns. Bitcoin is not recognized as a currency in Israel and earnings made by trading them are subject to a 25% capital gains tax for individuals and a 47% corporate tax rate for corporations. Those two factors reportedly result in the …

Scam letters purporting to be from the United States Internal Revenue Service (IRS) are trying con cryptocurrency taxpayers and others out of their funds. According to a Forbes report published on Aug. 5, bogus letters are attempting to capitalize on the public’s lack of familiarity with legitimate IRS correspondence and soliciting payments by using threats of enforcement action against them, among other tactics. F is for fake Among the strategies used by the IRS scammers, some letters claim that a warrant has been claimed against the recipient due to their unpaid tax obligations. Failure to make a payment immediately, they …