Good Morning, Brooklyn: Thursday, March 24, 2022
ATTORNEY GENERAL JAMES: VIRTUAL CURRENCY IS TAXABLE: New York Attorney General Letitia James warns investors in virtual currency, and their tax advisors that accurate declaration and payment of taxes is required. accurately declare and pay taxes on their virtual investments. Deliberate or reckless failure to properly declare and pay taxes on cryptocurrency transactions may constitute civil or criminal violations of the tax law, as well as violations of tax provisions of the New York False Claims Act, which could result in steep financial liabilities.
A dramatic surge in the production, sale, and acquisition of “virtual” or “crypto” currencies such as Bitcoin and Ethereum has led to new tax laws: IRS Notice 2014-21 and related DTF guidance, convertible virtual or cryptocurrency is treated as property rather than a currency for U.S. federal tax purposes.
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