Stay Tax Compliant when Investing or Using Cryptocurrency

Toongabbie tax accountant

Cryptocurrency emerged from blockchain technology is the latest buzz in the technology and investment markets. While many people have started investing or trading through this currency, several businesses have also started accepting it as a currency. This brings the cryptocurrency under the same taxation scanner as the dollars. So, if you too are dealing with it, you should follow this guide to stay tax compliant and avoid penalties.

What Crypto Records ATO Considers?

If you are using technology for a better life, ATO is also using it to keep track of transactions. And for those using cryptocurrency, don’t miss to declare your gains and spending. ATO collects data about different cryptos, when you acquired them, value at the time of acquisition, and when & where you used them.

Wallet Addresses

Wallet Addresses replace bank numbers in the crypto world. So, whenever someone transfers the digital currency from one wallet to another, their details along with the times and dates of the transaction are recorded

Data Matching

When you submit details of your crypto holdings, gains, and transactions, those are verified through advanced data matching. This is done to ensure accurate reporting and collection of taxes. So, you can avoid problems by providing exact details of all your dealings in the crypto world.

What Happens in the Case of Anomalies in Tax Returns?

Hiding or misrepresenting details of your income and transactions through cryptos is treated as a regular case of tax avoidance. Thus, you may face a penalty from the ATO depending on the negligence.

Understanding how to measure and declare crypto transactions can be difficult. You can hire a professional tax accountant from Toongabbie to rest assured that there’s no miss or negligence in your tax return.


During Tough Times on Paying Taxes, Consider these Options

toongabbie tax accountant

At the time of paying taxes, majority of people tend to freak out. For one; during the payment time, many still struggle to pay due to not having enough savings. Another problem during such tough times is the involvement of IRS and other third-parties which only lead to majority of problems like paying late fees, go behind bars, face the judge and more. If you are one of those who wish to save trouble even when you don’t have enough money to pay your taxes, consider these basic options.

  1. Get a Loan – One of the most powerful and effective ways of paying taxes is by taking a loan from your personal network of friends and family members. Taking a loan from your personal network means you don’t need to pay any form of interest. However, it is your responsibility not to delay at the time of paying the money back to them.
  2. Consider Using your Credit Card – If you own a credit card, then this is another option for you to pay your taxes. Before you consider using your credit card, head over to the bank and learn the interest rates that will help you choose the correct plan.
  3. Consider Asking for Additional Time – To pay your taxes and to avoid paying penalties and fines at the same time can also benefit you by asking for additional time by speaking to the IRS. However, you should only consider this option provided you have a genuine excuse.

Along with these tips, you should also consider hiring a professional tax accountant in toongabbie region to help you get your taxes sorted.