Updated: Dec 16, 2019
In the 10 years (1/3/09) since the launch of the Bitcoin Network, there have been many changes and upgrades to the process and design Satoshi Nakamoto envisioned and later made famous in his White Paper. Many regulators and government agencies are a large part of the Bitcoin metamorphosis. Since 2014, the United States Internal Revenue Service (IRS) created IRS Notice 2014-21 the subsequent updates to the Tax Code that followed.
Tax Guidelines Changes
In the past 5 years, we have consistently seen widespread misinformation about tax guidelines mostly because Bitcoin (BTC) price is often tracked in USD when it comes to the tax liabilities applied to gains and losses which vary from state to state and country to country.
While jurisdictions like the US were early to adopt tough tax guidelines, countries like France and Portugal have opened their doors to this emerging market–while countries with unreliable banking systems are likely to follow suit.
"we continue to witness the fear-mongering of banking systems."
As we continue to see major heads of state battle against an entity with no CEO and no major corporation backing its monetary policy–we continue to witness the fear-mongering of banking systems. They wish to keep the secret from reaching the masses–that Bitcoin is hard money and their FIAT is no match.
Am I a Criminal?
So when authorities mention all the illegitimate actions being funded or fueled through the use of digital assets, they're not only talking about the sex, drugs and rock & roll side of crypto, but all the thousands of retail investors that have purchased crypto assets or virtual currencies in the past 5 years.
Following the initial release of the original guidelines, holders continuously failed to report their gains, but to the surprise of many, they have also failed to report their losses. In essence, failure to report lowers liability as IRS figures show that more than half of losses in the 2018 tax season went unclaimed by investors.
Hector Claudio is a Crypto advocate and a US tax preparer specialized in crypto tax filling
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