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The IRS To Send 10,000 Letters To Taxpayers Owning Cryptocurrency

The US Internal Revenue Service (IRS) announced Friday that it would send letters to taxpayers who own cryptocurrencies. Such “educational letters” contain tips on paying taxes and filing amended tax returns for their property.

In the newsletter, the service reported that there are three variants of the letter. Further, the IRS representatives noted that such letters will be sent to more than 10,000 taxpayers before the end of this month, adding that the names of these people were received according to a specially developed action plan for identifying cryptocurrency owners. IRS Commissioner Charles RETTIG commented on this initiative:

“Taxpayers should take these letters very seriously by reviewing their tax filings and when appropriate, amend past returns and pay back taxes, interest and penalties,” IRS Commissioner Chuck Rettig said in a statement. “The IRS is expanding our efforts involving virtual currency, including increased use of data analytics. We are focused on enforcing the law and helping taxpayers fully understand and meet their obligations.”

Reddit users are already writing about receiving such a letter. Recall that in May, the IRS began work on a new guide for cryptocurrencies, for the first time since 2014.

Image courtesy of Pixabay

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