Re:The IRS Sets a Trap for Cryptocurrency Tax Cheats
by JackFr on Sunday September 27, 2020 @02:07AM
(#24604578)
Yes and no.
EITC not withstanding you need to have income to hide it.
According to Brookings, the bottom 50% pay 14% of the taxes but are responsible for only 12% of evasion.
The better distinction is the source of income. Farms, landlords and sole proprietorships are the leaders in misreporting income. W-2 salary reporters account for <1% of evasion. Between those two groups are misreported tips (typically lower end) and capital gains (typically higher end)
EITC not withstanding you need to have income to hide it.
According to Brookings, the bottom 50% pay 14% of the taxes but are responsible for only 12% of evasion.
The better distinction is the source of income. Farms, landlords and sole proprietorships are the leaders in misreporting income. W-2 salary reporters account for <1% of evasion. Between those two groups are misreported tips (typically lower end) and capital gains (typically higher end)