Crypto News | IRS Cautions About Crypto Taxes

Crypto taxes? What crypto taxes? OK, admittedly, these crypto taxes are just your plain old regular taxes, but a lot of crypto users thought that they were under no obligation to pay them, what with the nature of cryptocurrencies, the fact the space is still largely unregulated, and the fact that the status of cryptocurrencies is still very vague. As we have previously reported, the current slump/stagnation in the prices of some cryptocurrencies, particularly Bitcoin, may in large part be due to users realizing that they have a lot of taxes to pay and that the IRS will come after them. And these fears have now been confirmed. On Friday, the US Internal Revenue Service (IRS) released a memo, warning US citizens of their obligation to report their digital currency gains on their income tax returns. Let’s not forget, the IRS defines cryptocurrencies as property, not as currency, which means they are taxable. Many veteran users were already familiar with that fact, but 2017 was an explosive year, and it is likely that a lot of users rushed headlong into crypto trading, accumulating gains that may no longer be there – especially after the prices of cryptocurrencies decreased.

Perhaps Uncle Sam’s looming shadow prompted some users to disrupt the system by attacking government computers in Atlanta. Several government departments came under attack from hackers, who were able to block the systems, even though they were unable to do anything with the data stored there, since it is heavily encrypted. The City of Atlanta, GA posted an official statement on its Twitter feed, stating that they are experiencing “outages” affecting various applications. The attack is apparently a ransomware attack, with the hackers demanding approximately $51,000, paid in Bitcoin. The mayor, Keisha Lance Bottoms, stated at an emergency press conference that officials have no knowledge of how big the attack is yet. As a silver lining, water, public safety, and airport operations were not affected.

Lastly, Reddit has apparently removed Bitcoin from the list of its payment options. At the moment, the company only accepts PayPal and credit card to pay for Reddit Gold. It would appear that the move is not permanent, even though Reddit plans to examine demand and investigate the whole thing thoroughly before making any other moves.

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Author: Max Rothstein

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