The Internal Revenue Service, or IRS, is a public authority of the United States Federal Government. The IRS is responsible for all tax collection and controls the implementation of tax legislation. The service was formed in 1862 and is headquartered in Washington, D.C.
There is currently an essential issue concerning the IRS regarding cryptocurrency taxation. The organization has already announced that Bitcoin and other digital money are regarded as a possession, mining as a way of income, and storing cryptocurrency is equivalent to holding gold, meaning that everything should be taxed using the existing laws. Due to the IRS, if a Bitcoin owner came into possession of it by mining and then sold it, it should be considered 100% profit, which should be taxed between 15% and 20%, depending on its size. In addition, the IRS requested some prominent cryptocurrency exchange administrations for information about clients whose transactions were more than $20,000/year between 2013-2016.
