Just-In: US IRS Investigating Crypto Traders Benefitting from Tax Havens; Details
According to a June 12 Bloomberg report , investigators are currently developing civil and criminal cases against several hedge fund managers, cryptocurrency traders, and other wealthy Americans who may have lied about the nature of their residency and important components of their income to unfairly benefit from the tax breaks. advertisement Why IRS Is Chasing Crypto Traders? Since 2012, Puerto Rico has provided large tax breaks to American investors, hedge fund managers, and cryptocurrency traders. Some investors have been able to lawfully avoid paying federal income tax thanks to this legislation, as well as no taxes at all on dividend, interest, and capital gains income. Investors must maintain close local relationships and live in Puerto Rico for a minimum of 183 days per year to be eligible under the island’s tax policy. In addition, according to Bloomberg, more than 5,000 Americans and 3,600 companies have been eligible for tax breaks since 2012...