Jul 29, 2019

IRS Issues Virtual Currency Warning Letters

Last Friday, the Internal Revenue Service began issuing letters to taxpayers who trade virtual currency warning that they may have failed to report income and pay taxes owed. “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,” said IRS commissioner Charles Rettig in a statement. The tax implications vary depending on whether an individual sold, received, were paid in, or mined cryptocurrency. The IRS began addressing tax noncompliance related to the use of virtual currency through the Virtual Currency Compliance campaign announced last year. Failure to properly report cryptocurrency transactions could result in an IRS audit or criminal charges. https://www.cnbc.com/2019/07/26/the-irs-is-going-after-some-cryptocurrency-holders-for-back-taxes.html