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The Trump administration has just released a statement allowing Americans to delay paying taxes up to $ 1 million each. Accordingly, investors with virtual currency income in this country can delay reporting and paying taxes for up to 90 days.

The reason is that the Covid-19 translation has caused a series of companies to close, reduce staffing and delay many cases. Therefore, the income of some of these people is not enough for tax purposes.

United States to extend tax returns

Specifically, citizens will be exempt from late payment fees and interest during the 90-day extension period, while the US Internal Revenue Service initially instructed to keep the reporting deadline as April 15. Kevin Brady, Commissioner of the House Tax and Finance Committee, stated:

Residents still have to file their tax returns on time April 15, but they will automatically be deferred tax payments.

Tax imposed on virtual currencies

Although the Democrats quite supported the agency’s decision to extend tax payments, it still requested an extension of the report due to the difficulties caused by the Covid-19 pandemic. Therefore, on Saturday last week, Stephen Mnuchin, the US Treasury Secretary, decided to give in and postpone the submission deadline until June 15.

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Putting in place tax regulations on virtual currencies

Tax deferral benefits those who owe virtual currency tax, especially those who profit from it. Bitcoin’s price situation is still quite bleak and has almost lost the margins it has made in recent years.

In addition, because the US Internal Revenue Service has not clearly explained the definition of virtual money to apply tax, people still have difficulty in declaring correctly about the virtual currency revenues,

However, while the debate surrounding whether to classify Bitcoin as “cash” or “investment” is not over yet, people are still not afraid to be fined for delaying tax payments on profits from virtual currencies. .

The market is still in decline

The Bitcoin market rallied briefly over the weekend but slumped again later this week. Prices remain stable at $ 6,000 but seem to stagnate in the face of player anxiety.

Primexbt exchange also struggled after its worst week since October 2008 in the midst of the financial crisis. The likelihood of a recession is getting higher and higher and the United States cannot help but worry. However, the tax deferral can make up for the partially stalling economy.