OPINION: If the IRS Has Software For Tallying Crypto Profits and Losses… They Should Share it
The average crypto trader who traded crypto with any frequency is likely to fail at properly reporting their crypto profits and losses because the task of calculating everything is overly complex. For the IRS to fine the trader, they will have to tally their profits and losses. If the IRS has software that does this…. they should share it.
In other words,
- The IRS is asking individuals to report crypto profits and losses from all sales and trades in the value of cryptos at the time on the exchange they traded on. This is essentially impossible without complex software for anyone who traded frequently.
- For the IRS to fine individuals who traded frequently they will likely need to build out software which tallies profits and losses accurately.
- If the IRS has software which tallies profits and losses accurately, they should share it.
- If the IRS does not have software that does this, then they can’t issue a proper fine, and can’t verify crypto reporting, and thus this should act as a sign that things are not OK the way they are and need immediate reform by rule makers.
Seems obvious to me, maybe I am missing something, what do you think?