The solution will help cryptocurrency owners calculate the estimated tax margin they should report to the IRS.
Payroll provider Bitwage and software developer Consultabit have added a new tax tool to their Bitcoin investment calculator .
The new tax plugin will help cryptocurrency investors meet their reporting obligations by providing an estimate of federal taxes associated with earnings derived from digital currencies.
The calculator presents a total due to the Internal Revenue Service (IRS) - the United States tax agency - based on amounts invested, annual income, and marital status. In addition, Bitwage and Consultabit have added a button that allows investors to see their earnings and taxes on one-off purchases.
Emphasis on paying taxes
The function of the tax calculator comes at a time when the Internal Revenue Service is intensifying efforts to avoid possible tax evasion events derived from investing in cryptocurrencies, even when other organizations have recommended avoiding efforts that attempt against these technologies .
In fact, this month the Internal Revenue Service has once again begun to send " notifications " of questionable legality to American taxpayers, who allegedly have carried out operations that derived profits with cryptocurrencies.
In those notifications, in which he inquired extensively about unpaid or incorrectly filed crypto taxes, they appear to have been sent en masse to an unknown number of taxpayers on August 14.
These documents are part of what the IRS calls a " soft letter " campaign , a call to action to encourage taxpayers to fix alleged discrepancies on their tax returns before the agency takes the situation to a full investigation. by way of audit.
These letters along with the arrival of cryptocurrency questions on Form 1040 (tax payment form) show the IRS's ongoing effort in regulating the cryptocurrency space. At the time of writing, the agency has not released any communication regarding this new wave of tax warning letters.
Crypto headline warnings
It's also not the first time the IRS has taken a similar action. In July of last year the entity again sent letters to cryptocurrency holders warning them to pay taxes on their earnings.
Cryptocurrency holders in particular are faced with lots of tax guidelines, some of them with no clear answer, such as legal outlook on certain cryptocurrencies, capital gains reports, accounting for cryptocurrency transactions, among other things.Other initiatives
In this vein, Bitwage and Consultabit launched a dollar calculator for Bitcoin payments in January . The payroll provider allows employers to pay their workers in BTC as well as various other cryptocurrencies, as a way to quickly move money without international hindrance.
Recently, it added payments in USD Coin (USDC), a stablecoin pegged to the price of the US dollar, allowing users to avoid the volatility associated with other traditionally known cryptocurrencies.
This is not the first initiative launched in the US to facilitate the payment of taxes. Recently, in July of this year, the multinational consulting services firm, Ernst & Young (EY), launched an application that makes it easier for cryptocurrency users in the US to file taxes.
