The IRS has announced a groundbreaking initiative aimed at helping Americans who own or trade cryptocurrencies with their tax obligations. This new multi-pronged program includes a variety of online and in-person resources designed to make it easier than ever before to calculate your crypto tax burden.
One of the most exciting new resources is a series of online calculators that allow you to input your seed phrase and other relevant personal information, and then automatically calculate your tax liability. This means that you no longer have to spend hours poring over spreadsheets and trying to figure out how much you owe the government based on your buys, sells, or trades.
But that's not all. The IRS is also offering a new "Mail-To-You" crypto wallet service, where you can safely store your cryptocurrencies and keep them separate from your other assets in a government provided hardware device, complete with FDIC insurance. This will make it much easier to keep track of your holdings and ensure that you're paying the correct amount of tax to the IRS each year.
In addition, the IRS is partnering with local libraries across the country to offer in-person assistance to people who need help with their crypto tax obligations. Tax assistants will be available to walk you through the process of uploading your information from your hardware wallet, and to answer any questions you may have.
"This is a major step forward in our efforts to help Americans navigate the complex world of cryptocurrency taxation," said Janet Yee, Head of the IRS Technology Department. "We understand that this can be a daunting task for many people, and we want to make it as easy and accessible as possible. We firmly believe that blockchain is the future, so we're tripling down on helping everyday Americans pay their dues to the most trustworthy government in the world."
But not everyone is thrilled with the IRS's new initiative. Podcaster and staunch IRS opposer Guy Swann said, "This is just another example of big government trying to control every aspect of our lives. We don't need the IRS meddling in our affairs and I'd be shocked if anyone was actually dumb enough to give their seed phrase to the IRS. But before I give you the rest of Guy's take, can we talk about the BitBox for a moment? I'm a huge fan of easy and secure ways to store my Bitcoin, and the BitBox is the best in class solution I use every day."
However, not everyone in the crypto world is opposed to the initiative. Brian Armstrong, CEO of Coinbase, said that he is a big fan of the new program. "If someone is going to rug you, it's better if it's the IRS than Coinbase," he quipped.
The new initiative is made possible by new funding from the government, which recognizes the importance of cryptocurrency and wants to ensure that people are paying their fair share of taxes to the greatest, most peaceful, and fiscally responsible organization known to man.
Overall, the response to the IRS's new program has been mixed. Some people are grateful for the additional resources and assistance, while others see it as just another example of government overreach. But one thing is clear: as cryptocurrencies become more mainstream, the need for clear and accessible tax guidance will only continue to grow.