The announcement included a steely warning from IRS Commissioner Chuck Rettig. “Taxpayers should takes these letters very seriously by reviewing their tax filings and when appropriate, amend past returns and pay back taxes, interest, and penalties,” said Rettig…
On July 26, the IRS announced it started mailing “educational letters” to taxpayers with virtual currency transactions that potentially failed to report income and pay the resulting tax, or did not report their virtual currency transactions properly. By the end of August 2019, more than 10,000 taxpayers will receive letters related to their virtual or cryptocurrency transactions. The IRS explained that it obtained the names of taxpayers through various ongoing IRS compliance efforts, but did not specify which efforts.
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