Cryptoinvestments and the tax office: Is the regulation coming now?
Blox.io is a platform for crypto tracking, management and accounting solutions. Blox has published a study "The Crypto CPA Insights Report" on tax returns. The study describes the difficulties that crypto owners and CPAs have with the correct tax return. The report also provides insight into the hurdles that individual investors and companies face in order to track and manage their digital assets in detail. The report also provides insight into the emerging crypto accounting industry.
As part of this first investigation by the US tax authority, Blox reports that just 5 percent of US accountants believe that their clients are able to disclose a full and accurate tax return.
This can happen deliberately, but also unconsciously. Because 98 percent of CPAs said that missing or inaccurate data should lead primarily to crypto billing errors. In addition, there is a lack of understanding of cryptocurrency tax rules, as well as a lack of government regulation and guidance on how to properly manage digital assets.
Is accurate reporting to the tax authority possible at all?
Founder Sharon Yip of Crypto Tax Advisors said in one press release For this:
If a business has created 1,000 transactions per day with 100 different wallet addresses for 30 different departments, organizing and tracking those transactions is like finding a needle in a haystack.
Sharon Yip also says investors find it a dangerous game to rely on exchanges. Some exchanges document the transactions only a few months, other exchanges are closed. This makes a calculation of profit and loss almost impossible and can lead to legal consequences.
To this end, CriptomonedaseICO had reported in May, to what extent taxes on the proceeds of crypto trades accrue. In addition, the Swiss start-up Accointing offers a tax tool for traders. The tool allows the monitoring of the portfolio and provides tax assistance.
Alon Muroch, CEO of Blox, also sees one of the biggest problems in the missing infrastructure and said:
This is a whole new industry and most investors and accountants are still learning the basics. One of the biggest problems is the lack of infrastructure. The more crypto transactions become mainstream, the more intelligent tracking and management tools are essential. Human error can have serious consequences.
It is reported that 93 percent of CPAs believe there will be intelligent crypto-tax software solutions in the near future. In addition, 81 percent argue for a stronger automation and DatenpeicBitcoin control system.
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