Uncle Sam Wants Your Crypto!

As you know, the IRS’s middle name is “Revenue,” so it won’t surprise you to learn that the IRS is very interested in taxing your crypto gains. Right now, reporting is the biggest issue. To solve for that, the IRS went to court and got authorization to issue John Doe summonses to some centralized exchanges (Kraken and Circle). They were looking for people with over $20k of transactions between 2016-2020.

There are far more questions than answers right now. Today, the IRS treats crypto as property. If you purchase something with BTC, did you sell your property to pay an expense? Did you use a liquid asset to make the purchase? There’s a lot to work out. If you’re into crypto, have a look at the president’s 2022 budget proposal. It is light on specifics, but it clearly says that the Feds want in on the crypto biz.

Author’s note: This is not a sponsored post. I am the author of this article and it expresses my own opinions. I am not, nor is my company, receiving compensation for it.

About Shelly Palmer

Shelly Palmer is the Professor of Advanced Media in Residence at Syracuse University’s S.I. Newhouse School of Public Communications and CEO of The Palmer Group, a consulting practice that helps Fortune 500 companies with technology, media and marketing. Named LinkedIn’s “Top Voice in Technology,” he covers tech and business for Good Day New York, is a regular commentator on CNN and writes a popular daily business blog. He's a bestselling author, and the creator of the popular, free online course, Generative AI for Execs. Follow @shellypalmer or visit shellypalmer.com.



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