IRS goes after cryptocurrency users misreporting transactions
Fri, 19 Jul 2019, 06:03 am UTC
The U.S. Internal Revenue Services (IRS) is ramping up efforts to get a hold of those who are not properly reporting their income from cryptocurrencies and evading tax payments on such income.
The IRS is sending out letters to specific recipients telling them that they are subject to investigation due to suspicions of underreporting income via cryptocurrency, Bloomberg reports. This follows recent reports that suggested that the agency had trained its staff to find cryptocurrency wallets.
“We have information that you have or had one or more accounts containing virtual currency but may not have properly reported your transactions involving virtual currency, which include cryptocurrency and non-crypto virtual currencies,” the letter, known as “Letter 6174-A,” reads.
IRS officials are calling crypto tax enforcement a "top priority." According to Bloomberg, the letter also warns of potential civil and criminal enforcement action.
Earlier this month, a Twitter user, going by the name Crypto Tax Girl, posted some slides from a presentation reportedly given to special agents in the IRS Criminal Investigation division. The goal was to explain the tax implications of cryptocurrencies, among other things.
“I recently got hold of a presentation given to special agents in the IRS Criminal Investigation division that discussed investigating taxpayers who hold crypto,” the post’s caption reads.
“I went through all of the 181 horribly formatted slides (attached for reference haha).”
I recently got hold of a presentation given to special agents in the IRS Criminal Investigation division that discussed investigating taxpayers who hold crypto.— Crypto Tax Girl (@CryptoTaxGirl) July 8, 2019
I went through all of the 181 horribly formatted slides (attached for reference haha) and here's what I learned... pic.twitter.com/YQqHVR5Dv7
It would appear that the IRS will be dragging major tech firms into the fold with surveillance methods that will involve looking into users’ histories, DashNews reports. This is supposed to “see if they have ever downloaded cryptocurrency applications.”
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