United States - June 14, 2022 —
Tax Network USA is a full-service tax resolution firm offering tax resolution, tax preparation, audit representation, bank levy, and wage garnishment services.
The crypto space holds many mysteries, even though it exists for over a decade. The nature of crypto assets and transactions had favored crypto buyers, miners, and sellers, as legal bodies would need considerable amounts of time to notice faint traces, let alone pinpoint any specifics regarding cryptocurrencies being bought, sold, or held.
The question that has been on the minds of thousands of NFT collectors, crypto traders, and especially crypto businesses is “can the IRS seize cryptocurrency to settle unpaid tax debts?”
The simplest answer has been laid out by Tax Network USA, which is a full-service tax resolution firm that wanted to edify its clients about the correlations between tax debts and cryptocurrency as a whole. Regarding IRS’s jurisdiction over crypto assets, Tax Network USA’s spokesperson imparted the following:
“If you hold cryptocurrency (Bitcoin, Ethereum, Doge, etc.) and owe money to the IRS, your crypto assets could be seized to satisfy the outstanding tax debt.”
As of 2014 (IRS Notice 2014-21, 2014-16 I.R.B. 938), the IRS classified crypto assets as property. This means that all transactions using virtual currency are beset by the same tax principles applied to any other property transactions.
Crypto is rapidly rising in popularity and can be perceived as a double-edged sword for crypto holders with unsettled tax debt and unfiled returns at their table. Tax Network USA extends a helping hand to all individuals and firms that are faced with this problem.
Since 2014, IRS has taken action against hundreds of thousands, but even so, many still believe that the convoluted transaction mechanisms of the crypto space will help them evade the agency.
The IRS relies on the comprehensive Information Reporting Program (IRP) to track crypto transactions and has the power to order disclosure on accounts of users that hold unpaid balances with the IRS.
No matter how insignificant a debt may be, the loss of crypto assets could cause significant financial damage to the holder due to rapidly fluctuating values. A coin estimated at $100 today could be worth thousands in less than a month.
Tax Network USA’s spokesperson imparted that all individuals that cannot pay their tax debts off have several options at their disposal. The Offer in Compromise (OIC) “is an agreement between a taxpayer and the IRS that settles a taxpayer’s liabilities for a lump sum payment. It is always recommended to have an attorney represent you during the process.”
The Hardship Status is a viable option, placing individuals on non-collectible status, which further means that the IRS has agreed to stop attempts to collect the taxes back. Finally, IRS offers a multitude of Payment Plans and installment-based agreements that can help individuals cope with the situation.
Tax Network USA and its professional lawyers are readily available to protect its clients and offer actionable solutions at highly approachable fees. More information about Tax Network USA is available on the company’s official website.
Contact Info:
Name: Evan Hardacre
Email: Send Email
Organization: Tax Network USA
Address: 15760 Ventura Blvd STE 1560 Encino, CA 91436
Phone: 1(855)225-1040
Website: https://www.taxnetworkusa.com/
Release ID: 89076547
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