Industry Research: Many Cryptocurrency Investors Are Likely Trying To Hide Gains From The IRS
Market strategy and sector research firm Fundstrat says the cryptocurrency market is soaring. A recent report from the firm explained:
“[E]stimated cryptocurrency-related U.S. tax liabilities [are] at $25 billion. That is based on approximately $92 billion of taxable gains for U.S. cryptocurrency investors, who, according to Fundstrat, comprise around 30 percent of cryptocurrency investors worldwide. Globally, the cryptocurrency market grew from about $19 billion at the start of January 2017 to more than $500 billion at the end of December 2017, according to data from CoinMarketCap.”
Fundstrat also predicts that an overwhelming percentage of crypto investors will fail to report their token-related capital gains accurately. The report hypothesizes:
“Because transactions in virtual currencies can be difficult to trace and have an inherently pseudo anonymous aspect, some taxpayers may be tempted to hide taxable income from the IRS.”
Hiding Crypto Gains From Uncle Sam Is The Worst Idea You’ve Had All Year
Trying to hide cryptocurrency from Uncle Sam is a spectacularly bad idea. Big mistake. Huge. In the most extreme cases, it can land you in jail. Take Mike “The Situation” Sorrentino; the Jersey Shore alum is spending nearly a year in prison for the offense.
Now, there are perfectly compliant ways of investing crypto gains to keep them in your pocket. Our team regularly works with businesses and individuals, with cryptocurrency gains and holdings, on developing investment and tax positioning plans.
You do have options — both domestic and international. Take, for example, the Opportunity Zone initiative, which affords massive tax breaks to investors operating in designated revitalization regions.
Connect With A Firm Who Can Help You Hold Onto Your Crypto Gains, Compliantly
If you’re interested in keeping more money in your pocket, instead of the government’s coffers, get in touch with the Gordon Law Group today. We’re based in Illinois but work with businesses and entrepreneurs from across the country and around the world.Connect With A Cryptocurrency Lawyer »