The U.S. Internal Revenue Service (IRS) is reportedly starting to crack down on cryptocurrency investors and traders who failed to report their gains in past years.
According to a recent news bulletin, the IRS has begun sending letters to taxpayers with unreported crypto and virtual currency transactions to prompt the proper reporting of capital gains from previous tax years.
“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.”
The IRS states that it began sending letters last week and plans to have contacted more than 10,000 taxpayers by the end of August.
More: IRS News Bulletin
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Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.