How the IRS tracks down people who don’t report their crypto
Cointelegraph
Published Oct 30, 2020 05:30PM ET
Updated Oct 30, 2020 07:00PM ET
Crypto income taxation is a murky arena at present. It would seem that even the U.S. Internal Revenue Service, or IRS, has a tough time figuring out who owes what, according to Wendy Walker, solution principal at the tax compliance company Sovos.
"In the typical tax system, the IRS uses 1099 reporting," Walker told Cointelegraph in an interview. "So, 1099, W2, that tax reporting, it's the primary tool that they use to enforce tax compliance," she added. When people fail to report their crypto activities, the IRS is left with a headache.
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Written By: Cointelegraph
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