Before you submit your tax return to the IRS, ask yourself: What's the cost basis of your virtual currency holdings?
It could make the difference between paying the correct amount of taxes or shelling out a fine.
As Tax Day — April 17 — approaches, cryptocurrency holders ought to take a moment and review their holdings as well as all of their transactions throughout 2017, whether they sold it, bought something with it or swapped it.
The IRS recently sent out a warning to filers, reminding them that any income stemming from these transactions must be reported on their tax returns.
In the worst case, failure to properly report your virtual currency transactions may lead to fines of $250,000 and prison.