Australian Taxation Office will send audit warning letter to cryptocurrency investors

According to The Daily Mail, the Australian Taxation Office (ATO) will issue audit reminders for cryptocurrency investors. Hundreds of thousands of Australians will receive a warning letter from the Australian Taxation Office in the coming weeks. The Australian Internal Revenue Service is contacting up to 350,000 people by letter or email to remind them of their tax obligations when using cryptocurrencies such as bitcoin (fiscal year 2017/2018). Cryptocurrencies are considered a form of property and are therefore assets used for capital gains tax. This means that any financial gain from buying and selling cryptocurrencies is usually subject to capital gains tax and must be reported to the Australian Taxation Office. The letters will warn recipients to correct their tax returns by April 1 and confirm any undeclared profits or losses they may have made on their investments, or they may be audited. The Australian IRS spoke to and stated that in April last year, the ATO released a data matching agreement for cryptocurrencies, and many people may not know that they need to declare online currency. ATO's initiative is designed to help raise awareness and give people the opportunity to correct mistakes.