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How To File Taxes If You Used Cryptocurrency In 2021 – Technology


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How To File Taxes If You Used Cryptocurrency In 2021


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Taylor Weinstein, counsel in the firm’s Tax and Investment
Management Groups, was recently interviewed
by Time magazine on how to manage the tax
implications of investing with cryptocurrency. According to
Weinstein, crypto is “an area where the IRS is looking heavily
to audit, because I think they see it as a high revenue
raiser.”

Weinstein goes on to note that the 1099-K form is mission
critical, as many crypto exchanges have started issuing a tax form
called the 1099-K for their most active traders
(i.e. those that have exceeded $20,000 in gross payments and 200
separate transactions). “This is the IRS’s number one
line of defense right now, because those 1099-Ks are filed with the
IRS at the same time as they are delivered to the recipient…(i)t
is going to be the IRS’s weapon in finding taxable crypto
transactions.”

The full article, which was picked up by other outlets
including Crypto News BTC, is available here.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.

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