Although the Coronavirus pandemic is definitely quite bad, a little bit of good is coming out of it. The Internal Revenue Service (IRS) has delayed the tax payment deadline from April 15 to July 15, which is a 90 day delay. This means that no one has to pay crypto taxes for 2019 until 4 months from now.
The reason the government has taken this action is to decrease the monetary burden on Americans, at a time when many people are losing their jobs due to the economic crash, or being forced to stay at home instead of working due to quarantines. Also, many businesses are losing tons of money.
Notably, the tax break is only up to $1 million for individuals and $10 million for businesses, so perhaps the biggest crypto businesses like Coinbase still have to pay their taxes by April 15, but everyone else is in the clear.
It is also important to note that April 15 is still the filing deadline, although it is fairly easy to get a 6 month filing extension.
On a final note, this tax delay is particularly favorable for crypto traders and investors because the crypto market was quite bullish in 2019, and crypto users made a lot of money, only to see crypto prices decline sharply in the past month, possibly erasing many people’s 2019 crypto gains. Thus, numerous crypto users may owe substantial taxes for 2019, and it may be especially hard to pay these taxes due to the recent crypto crash, but at least no taxes are due until July 15.