There has been a new development in the crypto sphere regarding Bitcoin miners recently.
The IRS now has a new squad to audit all Bitcoin mining pools.
All wallet addresses, pool aliases, and similar information will be investigated.
Their motive for doing this is to ensure that there is no single Bitcoin mining pool without KYC verification.
As we know, the job of the IRS is to ensure the payment of taxes, process the taxes paid, and punish those who refuse to pay taxes.
Further, they view all income from cryptocurrency mining, including using Bitcoin, as a taxable event.
Therefore, all mining activities are to be reported to the IRS at the end of the month.
The income generated from mining is considered ordinary and taxed at a rate of 10-30%.
All miners, which include those who mine for fun and those who do it for business purposes, are mandatorily required to fill out a tax form for their earnings.
Failure to report these taxes can be considered tax evasion, and offenders may face tax interest and sometimes criminal charges.
In the event of this, the IRS may be forced to take legal action against the offender.
An example of this is the rumour about the IRS’ plans to subpoena manufacturers of Bitcoin mining hardware ASIC dealers and mining pools in the US.
Aside from that, they can carry out criminal investigations regarding taxes and retirement plans and regulate tax-exempt organisations.
With all this, we can see that the IRS is out to get all companies and organisations that skillfully evade taxes and bring them to justice.
And it appears that Bitcoin miners are now among the targets they are after.
Therefore, according to a CPA, the best thing to do now is to get your finances in order and don’t evade taxes because tax audit confrontations are escalating each day.
