IRS Operation Hidden Treasure Crack down on Unreported Bitcoin and Crypto Users
Legible Tax from Verady Accurately Reconciles Crypto Holdings for Easy IRS Reporting
ATLANTA, March 25, 2020 – Verady, maker of the Ledgible cryptocurrency tax and accounting platform, makes it easy for crypto holders to accurately account for crypto events with Ledgible Tax for individuals and Ledgible Tax Pro for CPAs and accounting firms. As part of Operation Hidden Treasure, the IRS Criminal Investigation Division has formed a dedicated team of IRS criminal investigation professionals to target taxpayers not reporting cryptocurrency transactions on their tax returns.
“To this day many taxpayers don’t understand they MUST report crypto to the IRS or suffer the consequences. Some also believe the IRS cannot find them. They are wrong. Transactions on the blockchain are not anonymous, the record is public,” said Kell Canty, CEO of Verady. “Our Ledgible solution identifies taxable transactions and calculates the gain/loss in the necessary reporting format for both individuals and tax preparation firms.”
The IRS believes that there are 18-21 million taxpayers who need to report crypto when filing 2020 tax returns. Any taxpayer who can answer ‘YES’ to the IRS Virtual Currency question on the front page of the 1040 form must report their crypto holdings.
Holders of cryptocurrency wallets face the greatest challenge. They do not receive monthly statements, and on-chain wallets are not designed to provide tax reporting. The complexity of taxpayers transferring their crypto and not knowing the on-chain transaction history leads to many IRS reporting difficulties.
The main challenge for taxpayers and preparers is to manage all the crypto data across multiple wallets and exchanges as well as all transactions to calculate income, gifts, gains, and losses.
Ledgible Tax and Ledgible Tax Pro connect to an individual’s crypto sources to identify taxable transactions, calculate gain/loss, and enable the CPA to import the results into professional tax packages.