In the U.S. tax season has arrived and many American cryptocurrency proponents are squirming because they have to pay for some of the gains they made last year. However, there are a lot of digital currency holders who could care less about taxes and they strongly believe that taxation is antithetical to cryptocurrencies. While there is a good portion of digital currency holders planning to file their gains and losses, many crypto-advocates don't plan to pay their tax liabilities.
Cryptocurrency Taxes: Not Many People Pay Them
If you're a cryptocurrency enthusiast then over the past few weeks you've probably seen a lot of articles on paying cryptocurrency taxes, how to pay them, and the horror stories involved with those who have to pay taxes on every transaction because — every single one is a taxable event in the U.S. Even though lots of people believe the Internal Revenue Service's (IRS) classification is unjust by defining cryptocurrencies as a property rather than a currency, people still are forced to pay for their cryptocurrency gains. Just recently there's been a multitude of reports on cryptocurrency taxation, and some of them explain that a lot of cryptocurrency proponents don't seem to care about paying their digital asset taxes.
Tomorrow, taxes are due for American citizens, and there's a good portion of cryptocurrency holders not willing to pay digital currency capital gains.
Jagjit Chawla, the general manager of Credit Karma Tax explained this week that out of 250,000 individuals who claim to hold cryptocurrencies like bitcoin; less than 100 people (0.0004%) reported their gains to the IRS.
"There's a good chance that the perceived complexities of reporting cryptocurrency gains are pushing filers to wait until the very last minute," explained Chawla.