Per the latest IRS on cryptocurrency development in the crypto space, crypto taxpayers have been given a relief (though temporary) from the Internal Revenue Service (IRS). IRS on cryptocurrency saga is a rather bloody one since the Taxation authority has been hounding cryptocurrency owners to pay taxes.
However, this payment extension allows individuals to delay their payments and interest on up to one million dollars till 15th July. While businesses can defer even $10 million United States dollars or more, this unique move has been made due to the growing economic crisis that most of the people are going through. Quite a few states have also granted deferments.
IRS on cryptocurrency: Deferment welcome
News of this deferment up to $10 million United States dollars has been welcomed by the crypto investors, as many of them require some time to sort out their liabilities. Currently, IRS defines cryptocurrency as a property, and every trade a taxable event, even if the whole dealing does not involve any dollar. Moreover, traders are to provide information, and proper payment for every trade made.
It should be noted that 15th April is the filing deadline. This deadline must be met so as to process the tax returns. In general, IRS grants an extension of about six months automatically, although with penalties that have not been waived. Hence, taxpayers have a strong impetus to file timely, even though they are not able to pay immediately of what they owe.
The government is considering making further changes to the filing requirement this year. Besides, leaders have been considering giving other types of economic relief.