Positive the Facts recently highlighted the expertise of Ted Bauman in the article “Ted Bauman Explains Why Cryptocurrency Investors are Worried About the IRS.” The article, written by Paul Peters, reveals that despite the belief that the cryptocurrency is free of government restrictions, people are still legally obligated to pay taxes on their transactions.
Many cryptocurrency investors are beginning to panic after recognizing the tax implications of the cryptocurrency transactions. Despite taking a 50% drop in stock, cryptocurrency investors are still expected to pay their taxes. Many people became millionaires by investing in the blockchain technology, but their assets in cryptocurrency still need to be protected.
Ted Bauman, a prestigious writer for Banyan Hill Publishing, reveals that the IRS categorizes cryptocurrency as an asset which makes it an investment that investors need to acknowledge to the IRS. When people trade the digital currency, even in other countries, the investor creates a gain or loss. The IRS also began investigating the cryptocurrency in 2013 after it was created to be a government-free currency. The inventor Satoshi Nakamoto also created blockchain technology to improve the anonymity of investors. However, the IRS asked the government to provide the names of 14,000 Coinbase customers who had made trades of more than $20,000. The federal court ordered the company to provide the names and personal information of the customers. They will most likely face the consequences of the IRS in penalties, interest charges, and audits.
This is why Ted Bauman created a tax checklist for people who have invested in cryptocurrency. He reveals that the purchases made with the technology are all considered taxable events. People who are paid in cryptocurrency still need to claim that as income on tax forms. Those who pay others in cryptocurrency need to report the payment to the IRS. He reports that people who have made transactions are responsible for making detailed records of their transactions and report them to the IRS.
Ted Bauman was also featured in Kenneth Paroza’s article “Here’s How the Bull Market Dies” which discusses that people invested in American countries across the world will need to be wary of the possible trade war that may occur due to the current political climate.