The IRS is looking for contractors who will facilitate the taxing of cryptocurrency profits in the United States of America. The agency is looking for such outside services so that they will calculate people’s profits and losses from digital currency exchange activity. The contractors have not been chosen yet, but they will take responsibility for processing cryptocurrency transaction data derived from on-chain and of-chain sources, tax submissions, APIs, and a range of other sources in order to calculate how much people have gained and lost in the process of said actitivy. The IRS so far has contacted two companies – one is yet unnamed, the other is called CryptoTrader.Tax, the latter of which has rejected the proposition. If there is profit to be made from something the IRS will want to tax it, no exceptions.
How will negative price in oil or any stock trading taxing work in the spreadsheet? it would show errors. That was the reason IB freeze, it's automated system could not calculate negative numbers and shut down. error messages trigger and shut down. The IRS can do it in house and train their employees. The problem with cypto it's suppose to anonymous Banks and brokers send a form with your name to the IRS, they how much was sold. The loss or gain is easy: net position at beginnng of year - net position end of year = profit or loss.
It is not rocket science. Programmers will make the necessary adjustment to create accurate calculations.