What do you risk in 2022 for forgetting your crypto statement?

This article was written in collaboration with Waltio (Find out more)

The risk of an error or omission in your statement

In the event of default or omission of declaration, whether in the case of your accounts abroad via Form 3916-bis or your taxable transactions, you are subject to administrative and tax consequences, in particular fines.

Thus, in case of forgetting to report a digital asset account, the law (Art. 1736 X CGI) anticipates a fine of € 750 per. account unspecified as well 125 € pr. omission or inaccuracy has not been rectified on the initiative of the taxpayer.

If the value of your account has exceeded € 50,000 during the year, the fine may increase up to € 1,500 for his missing statement and 250 € per. omission or inaccuracy. There may also be an increase in the amounts you owe the tax authorities (tax adjustment):

  • 10% in case of errors in the calculation of your capital gains or losses;
  • 40% in case of bad faith or partial declaration;
  • 80% by repeated attempts at fraud.

💡 Know that you have always have the opportunity to correct your declaration within the next 30 days to avoid this tax adjustment.

In case of tax evasion recognized by the administration, criminal sanctions may apply. The law provides a fine of up to 3 million euros as well as a prison sentence of up to 7 years for gross fraud (Art. 1741 CGI).

Forgot to enter certain transactions or make a mistake? Do not panic, there is a solution.

👉 To avoid mistakes like this, check out our complete Waltio tax guide tutorial

The “right to error” solution

Good to know, the ESSOC Act of 2018 implemented ” room for error in tax matters. The right to error denotes the possibility of regulating one’s situation without paying a fine when a person has committed an error or omission in a tax return. The situation can thus be regulated at any time.

However, it should be specified default interest can be addedbut no surcharges or fines. Of course, the right to make mistakes does not apply to mistakes made intentionally.

How do you regulate your situation?

If you notice an error or omission in your statement, you can report it to the IRS by making a ” changed tax return »By connecting to your private space and using the online correction service open between August and mid-December of the year of the online declaration to be corrected.

To prevent such a situation from occurring, the use of a tax return assistance tool such as Waltio allows you to identify your taxable transactions and automatically calculate your taxable amount. Waltio provides you with the necessary tax documents in the event of a tax audit and allows you to file your cryptocurrencies in accordance with applicable law.

👉 Find our 2022 guide to tax reporting in cryptocurrencies

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About the author: Clement Wardzala

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Editor-in-Chief of Cryptoast, I discovered Bitcoin and blockchain technology in 2017. Since then, I have strived to share quality content so that the sector becomes more democratic for all.
All articles by Clément Wardzala.

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