Theoretically, the Internal Revenue Service (IRS) could look through every transaction on every blockchain to see profits and losses in each wallet or account. From there, the IRS could figure out the amount of on-chain gains it could tax. However, that raises the issue of whether those assets were sent from one wallet to another with the same owner, something that may not make it a taxable event. On top of that, there’s the difficulty of getting good information from exchanges to figure out the amount of off-chain gains the IRS could tax. In practice, this collection and estimation process is a mess.
Related posts
-
Bullish Reversal For Bitcoin? Retail Investors Flood Back As New Addresses Reach 4-Month Peak
Recently, the price of Bitcoin (BTC) has entered a consolidation phase, fluctuating between $61,000 and $62,000... -
Paraguay Raises Bitcoin Mining Power Fees by 14%, Companies Mull Stopping Operations
The National Power Administration of Paraguay (ANDE) has surprised cryptocurrency mining operators by raising power fees... -
Coinmetrics Report: Bitcoin Mining Faces Turbulence in Q2 2024
Bitcoin miners experienced a challenging second quarter in 2024, marked by a 7% decline in hashrate...