Crypto investors receive second round tax warnings from IRS

Crypto investors receive second round tax warnings from IRS

Internal Revenue Service is addressing a fresh cycle of letters to numerous crypto investors. These letters are informing them that their federal taxes incomes don’t equal the info collected from crypto exchanges.

These warnings declare that the error must have occurred because of the exchanges and not the taxpayers.

This is an extra sign that the IRS is concentrating on crypto tax agreement, after first being delayed to stay informed of the developing sphere.

Leading criminal director of the IRS told that digital currencies are a notable threat to tax collection and he mentioned that the agency is going to announce criminal tax evasion cases in the nearest future.

The agency won a landmark lawsuit in 2017 which demanded Coinbase to hand over data on users who purchased or traded at least $20,000 in crypto coins from 2013 to 2015.

These new letters are extra to those, the IRS was sending to investors in July warning that they may owe taxes on cryptocurrency transactions.

A representative of the IRS, who preferred to remain anonymous because of agency laws, said that the recent letters are going to be sent to a taxpayer any time the agency finds a mismatch between the trading incomes or losses that taxpayers file their profits and what third parties declare to the IRS via forms known as 1099-B.

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