IRS Seeks Contractors To Check Tax Data Of Cryptocurrency Investors

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3 years ago

IRS Seeks Contractors To Check Tax Data Of Cryptocurrency Investors

The US Internal Revenue Service (IRS) is looking for contractors to assess the correctness of tax payments by cryptocurrency investors. Companies will have to verify the data submitted by taxpayers.

According to an email posted by CryptoTrader.Tax, Assistant Deputy IRS Commissioner John Cardone said the agency is looking for contractors to "help our agents calculate taxpayer gains or losses from their cryptoasset transactions." At least one other company, who wished to remain anonymous, also received a similar letter.

The search for contractors was a consequence of the IRS's growing interest in the cryptocurrency industry. In October last year, the IRS published the first guidance in five years on how to calculate taxes on cryptocurrency transactions, as well as when new coins are received as a result of forks and giveaways by developers. In addition, the IRS has added cryptocurrencies to the taxpayer reporting form.

“I don't think users will be happy with this turn of events. However, those who report their tax liabilities related to cryptocurrencies have nothing to worry about, ”said CryptoTrader.Tax CEO David Kemmerer.

In the XRP blockchain, only 2% of transactions are associated with the transfer of funds

A group of researchers from Cornell University found that the vast majority of transactions on the blockchains of the three major cryptocurrencies have no economic value. In many cases, they simply clutter up the blockchain or are used to give out useless tokens.

“Our analysis showed that only a small proportion of transactions are used to transfer economic value,” the authors write. - So, 95% of EOS transactions were carried out in order to airdrop tokens that have no value today. On the Tezos network, 82% of the blockchain's bandwidth is used to maintain consensus, while in the XRP ledger, only 2% of transactions are associated with transfers. ”

In other words, the blockchains of these cryptocurrencies contain a large number of transactions, but in fact their economic value is small.

“In the case of EOS and XRP, most of the transactions exhibit the characteristics of DoS attacks,” analysts write. “XRP ledger bandwidth was consumed by zero value transactions during our observations. We were able to establish that the volume of transactions in the XRP ledger is being seriously manipulated. "

At the same time, according to the authors, these blockchains have a resource for processing large volumes of transactions, but they use it irrationally.

“We can make the following conclusion: the three blockchains reviewed in this study demonstrate the ability to work under high loads. However, their enormous potential is not yet fully realized in accordance with the declared purpose, ”they conclude.

Crystal Blockchain: Cryptocurrency Markets Affected By Regulation

The Crystal Blockchain analyst team has compiled a report on the movement of BTC between countries and cryptocurrency exchanges over the past 7 years.

The study will explore the impact of the new regulation on the cryptocurrency market, including on VASPs (virtual asset service providers). It contains 33 pages of detailed analysis of bitcoin transactions between 436 international exchanges from 70 different countries between 2013 and Q1 2020. The report can be found here.

The purpose of this study is to show how the bitcoin market has changed over the three evolutionary stages of regulation of cryptocurrency exchange, and how it has responded to external factors such as global financial fluctuations and increased regulation of digital assets. The report examines these trends in light of the events of the first quarter of 2020 and compares historical data.

After the G20 countries announced last year that they would apply FATF guidelines for cryptocurrency exchanges, including the "travel rule", as well as the recent EU 5AMLD digital asset legislation passed by the EU (many of which are G20 members), the team Crystal Blockchain has focused its reports mainly on transfers between G20 countries.

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Comments

Amazing

$ 0.00
3 years ago

Yeah i think i totally got the hook on this stuff actually XRP is also going very good in the blockchain as things are getting so tense and progressing slowly by the way if they can maintain that it will make it even go wider

$ 0.00
3 years ago

What are the really needful things to get the xrp coins to get to ots full potential in the market

$ 0.00
3 years ago

Perfect am just getting to learn much here day by day this is surely a very good news i love that

$ 0.00
3 years ago

Very good i really love how it has responded indeed which is a good idea

$ 0.00
3 years ago

well no doubt about this the crypto world has seriously change the situation of the living at all as things were a bit easier ans on the other hand a little bit risky for the stakers and much more as their funds are been introduce to threat all time

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3 years ago

i guess the internal revenue service are just hiding something from us but sure this aint just something you see and think they were there for no reason definitely the crypto is going fast and same with great risk so i support their move

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3 years ago

why should a company under crypto want to play anonymous at all i see no strong reason for their for them at all they never have any prove so it shouldn't cross their mind to try play hidden people need to know more about them, the government need to know about them

$ 0.00
3 years ago