A majority of American cryptocurrency investors have not yet reported their crypto investments to the Internal Revenue Service, according to Credit Karma, a startup that enables free credit score checks. The service says less than 100 people have reported gains from cryptocurrency investments out of the 250,000 Americans who have already filed their federal tax returns this year through Credit Karma.
That’s a pretty small amount when you consider the survey last month by Qualtrics, a credit score startup. The survey found that nearly 57 percent of 2,000 respondents reported some form of gains from cryptocurrency investments. (See also: Bitcoin Tax Guide: An Introduction.)
The IRS treats profits from crypto investments as capital gains. The delay in reporting cryptocurrency taxes should not be cause for worry, according to Jagjit Chawla, general manager for Credit Karma Tax. According to him, Americans with more complex tax situations file closer to the tax deadline…