Kraken to Hand Over Crypto Transaction Data to IRS: What You Need to Do?

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Kraken, a prominent cryptocurrency exchange, has informed its account holders that it will be providing the IRS with all cryptocurrency transaction data from the years 2016 to 2020. This data encompasses details such as names, dates of birth, taxpayer identification numbers, addresses, and a comprehensive record of cryptocurrency transactions. The IRS has been intensifying its efforts to combat tax evasion within the cryptocurrency community. Over the past few months, the agency has issued a series of summonses to cryptocurrency exchanges, compelling them to furnish user information. Kraken is the most recent exchange to comply with one of these summonses. The IRS has articulated its intention to use the data obtained from Kraken to identify taxpayers who may have underreported or entirely omitted their cryptocurrency income on tax returns. Additionally, the agency plans to employ this data to formulate new tax guidelines for cryptocurrency users. Source Notice To the User Shared by X User Choppy Kraken to Hand Over Crypto Transaction Data to IRS: What You Need to Do? If you are a Kraken account holder, you should take steps to prepare for the IRS to receive your transaction data. Here are some things you can do: Review your tax returns. Make sure that you have accurately reported all of your cryptocurrency income on your tax returns for the years 2016 to 2020. If you have made any mistakes, you may want to file amended tax returns. Gather your cryptocurrency transaction records. This includes records of all of your cryptocurrency purchases, sales, and trades. You can usually obtain these records from your cryptocurrency exchanges. Speak to a tax advisor. A tax advisor can help you to understand your tax obligations and to prepare for the possibility of an IRS audit. If you have underreported or failed to report your cryptocurrency income, you should speak to a tax advisor as soon as possible. A tax advisor can help you to develop a plan to correct your tax returns and to minimize your tax liability. Conclusion The IRS is serious about cracking down on tax evasion among cryptocurrency users. If you have underreported or failed to report your cryptocurrency income, you should take steps to correct your tax returns and to minimize your tax liability.tunesharemore_vert

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