Gary Guthrie from ConsumerAffairs notes that the July 15, 2020 tax-filing deadline for US taxpayers is approaching, and the Inside Income Service (IRS) plans to make sure that US residents have the suitable instruments and providers to help them with submitting taxes and assembly their obligations.
The IRS affords tax help 24/7 on-line at IRS.gov. The helpline may be used to inquire about the way to make a cost or be taught extra about being accepted for an extension.
In accordance with a assessment carried out by the ConsumerAffairs crew, the Interactive Tax Assistant device, provided by the IRS, helps reply many vital tax-related questions. As an example, taxpayers who needed to cope with sudden health-related prices in the course of the Coronavirus disaster will have the ability to get the solutions they want by merely typing in “health” within the tax assistant device’s search bar.
The IRS additionally assists US taxpayers by serving to them join with tax professionals, tax legal professionals, licensed public accountants, and different specialists.
The IRS has additionally reminded individuals who may have acquired stock dividends, or made capital features from digital currencies like Bitcoin (BTC) to ensure that they’re precisely reporting taxes.
Final 12 months, Turbo Tax printed an in depth weblog put up through which it tried to clarify the way to file taxes on Bitcoin (BTC) transactions.
The IRS has additionally addressed questions concerning digital foreign money transactions in its Income Rule 2019-2024 and in an FAQ article.
As defined by the Turbo Tax crew:
“Bitcoins used to pay for goods and services [are] taxed as income. If you are an employer paying with Bitcoin, you must report employee earnings to the IRS on W-2 forms. You must convert the Bitcoin value to US dollars as of the date each payment is made and keep careful records.”
Turbo Tax clarifies:
“Wages paid in virtual currency are subject to withholding to the same extent as dollar wages. Employees must report their total W-2 wages in dollars, even if earned as Bitcoin. Self-employed individuals with Bitcoin gains or losses from sales transactions also must convert the virtual currency to dollars as of the day received, and report the figures on their tax returns.”
The IRS lately received a case through which it had instructed a pair residing in Maryland to liquidate their Bitcoin holdings so as to pay $1.1 million in owed taxes.
Alexander and Laura Strashny had requested the IRS to repay their 2017 taxes, acquired from non-cryptocurrency transactions, in installments spanning a 6-year timeframe.
Nevertheless, the IRS rejected the couple’s suggestion and advised them to promote a portion of their $7 million in cryptocurrency holdings, so as to settle their tax obligations as quickly as potential.
