The tax service provider H&R Block of the US is enabling a new service that will focus on crypto transactors. This service will offer consultations on properly filing crypto gains and losses on tax returns.
H&R Block is now playing as a middleman between crypto users and the Internal Revenue Service (IRS). It began serving after IRS started sending letters to crypto investors regarding their tax filings. The IRS has sent around 10,000 letters to the crypto users persuading them to pay their taxes, interest or penalties. Moreover, the Commissioner of the IRS asked the taxpayers to take these letters seriously. The involvement of cryptocurrency in the financial sector is increasing the effort of the IRS. However, the IRS team is complying with laws to help taxpayers with their taxes.
Recently, the French finance minister Bruno Le Maire announced the Crypto-only trades-in France will remain tax-exempt. However, the country will tax cryptocurrency gains when they are cashed out into fiat currency. The value-added taxes (VAT) will apply when a person uses cryptocurrency to buy an asset or service. The exemption of tax from crypto-only trades-in France will benefit many cryptocurrency traders. It will thus allow them to acquaint themselves with the legal provisions that govern the accounting procedures and tax obligations related to the activity. The country’s approach will help track transactions, the source states.