The government has pushed a total of $9 trillion into the economy so far, and likely will spend trillions more. If we are only halfway through this mess, it’s a conservative bet to say that at least another $9 trillion in government stimulus is on the way. That would be almost $20 trillion – nearly equivalent to America’s annual GDP.
The question is, with debt rising at historical levels and tax revenue falling drastically due to the near-complete economic shut-down. Where will the IRS focus their attention to bring in desperately needed tax dollars?
Of course, the easy answer is, at those who are still earning, whether it’s through employment or investment gains. And which industries market cap has increased by approximately 150% since March when COVID began to change our lives? You guessed it, Cryptocurrency.
Let’s take a quick look at the timeline of some of the IRS’s actions aimed at Cryptocurrency investors:
- February, 2018: Coinbase Tells 13,000 User It’s sending Their Data to the IRS
- October, 2019: US IRS Adds Question on Crypto Usage to New Income Tax Form
The point of going down memory lane is to remind investors that the IRS doesn’t mess around. They will get what they believe is owed to them. As the saying goes,
“Nothing in life is certain but death and taxes.”
The good news is that none of the above issues apply if investing in cryptocurrency through an iTrustCapital IRA.