The IRS has already sent a letter of warning to cryptocurrency investors to properly claim their “digital assets” and pay the respective taxes. Now, only after a few months after the first warning, the second one is in.
This time, however, the letter is received by some crypto investors whose federal tax returns do not correspond to the information received from exchanges. As Bloomberg reported, this is another level of scrutiny that the IRS exercises.
In addition, what is more interesting is that the IRS’ letter acknowledges that the discrepancies in information may have been caused by the virtual currency exchanges, not by crypto investors.
The IRS will soon announce some of the tax evasion cases it has been working on, as reported by press, and wants to give serious warning to investors that taxes should be paid for holding and benefitting from virtual currencies.
The evasion of taxes is going to be made illegal by the IRS. In the first round of warnings, which were sent to more than 10,000 cryptocurrency investors, the IRS sent three different types of letters depending on the investor. What the IRS accentuated is that not being knowledgeable about filing taxes and complying with the law when it comes to digital assets is not an excuse and the agency shall not be lenient to those who just don’t know how to report and pay their taxes in the right manner.