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BNN bnnbloomberg.ca 14 Jan, 2022 19:00 am

NFT Investors Owe Billions in Taxes as U.S. Officials Crack Down

NFT Investors Owe Billions in Taxes as U.S. Officials Crack Down

Tax Evasion With so much money at stake, the IRS will likely be forced to clarify the rules, but it may begin auditing people first, said Michael Desmond, the former chief counsel at the IRS who is now a partner at Gibson, Dunn & Crutcher.“We subsequently will probably see an influx of potential NFT type tax evasion, or other crypto-asset tax evasion cases coming through” said Jarod Koopman, acting executive director of cyber and forensic services at the IRS’s criminal investigation division.“The harder it is for people to get to a reasonable -- or ideally, a right -- conclusion, the easier it is to ignore it.The infrastructure bill President Joe Biden signed into law last year will make it harder for people to hide digital assets, but the Treasury Department has not said whether that includes NFTs.

Some people aren’t aware they owe taxes quarterly and may already face penalties for just filing an annual return, said TokenTax’s co-founder, Zac McClure.“There are people who aren’t going to be willing to do what I’m doing.

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