US Tax Advisors warn US investors that once an investigation is initiated then there is nothing left to save. In particular the warning was issued by a California based tax law firm headed by Mr. David W. Klasing.
Klasing is regarded as one of the top tax and financial advisor in the State of California. He is a seasoned tax advisor rendering services to multi-millionaires, mega companies as well as crypto exchanges of the country.
Klasing’s office had recently issued a public message for the investors as well as for crypto exchanges. In the message Klasing has informed about the possibility of US Internal Revenue Service (IRS) of initiating an investigation. The message further informed that once such an inquiry is initiated then there is nothing left but to face the consequences.
It was later on explained that Klasing was more specifically referring to the investors and customers of Coinbase. Experts had suggested that the message warned Coinbase that the things are getting uglier between IRS and Coinbase’s customers.
It has been told by the firm’s advisors and lawyers that they have been monitoring the IRS’s movement. According to them, IRS had grown concerns over various customers of Coinbase who were found to be evading tax. They also informed that the authority had been secretly scrutinizing these users because they were not complying with the law. In addition, the users hadn’t been filing their reports before the authority which is also against the law.
The events led Klasing’s law firm to issue public warning on 11th November. It was added further in the warning that investigations will be initiated by the authority against certain users. This is because many of them had not disclosed holding of any digital assets in their annual returns. An act of misreporting or deliberate non-disclosure of the required information, is to be treated as violation of the law. In the conclusion it has been advised that such persons should immediately correct the wrong to avoid any such investigation/inquiry.
Currently, IRS had initiated voluntary disclosure program to give an opportunity to those persons who had failed to ensure compliance. Once the deadline is over then there will be no recourse available to such persons except for facing the consequences.