If you do, you may need to keep track of your trades for income tax purposes. The IRS is concerned that people may not be reporting their trades on their income tax returns.
Protecting yourself
Consulting a tax attorney can help you to address this issue and avoid civil penalties. Not reporting your cryptocurrency transactions can also be a crime.
Bradford Randolph is an attorney, and a certified public accountant, with experience in both U.S. and international legal and accounting matters.