The U.S. Internal Revenue Service is sending letters asking taxpayers who have cryptocurrency to pay back taxes or amend their tax returns.
According to a news bulletin the agency sent an announcement about “educational letters”. There were three versions of the letter.
In its statement, the IRS states that the letters will be sent “to more than 10,000 taxpayers by the end of the month” and that the names of these taxpayers have been obtained through ongoing IRS compliance efforts.
Chuck Rettig, IRS Commissioner stated in a statement
Taxpayers should review these letters carefully and, if necessary, amend their tax returns. The IRS is expanding its efforts in virtual currency. This includes increased use of data analytics. We are committed to enforcing law and helping taxpayers understand and fulfill their obligations.”
In May 2014, IRS began work on new guidance concerning cryptocurrencies. This was its first such effort since 2014. After the IRS’s decision to consider cryptocurrencies an intangible property, industry advocates and many other organizations have requested that the agency update its guidance.
A user of the r/bitcoin subreddit confirmed having received such a letter on Thursday. Tyson Cross, a lawyer for Forbes also described how many of his crypto-focused clients received such a letter from IRS.
