The IRS doesn’t take kindly to people purposefully evading taxes. This is especially true when those users are also cryptocurrency holders or traders. Despite sending out thousands of letters in recent weeks, the agency is already stepping up its game. A new version is making the rounds which is a lot more straightforward and firm. It also shows how the agency is looking at Bitcoin and altcoins in 2019.
Specific Owed Amounts
Whereas the first batch of letters – which comes in two different versions – was more of a guidance tool than actual demand, the new letters are very different. Not only does it confirm the IRS has a database on Bitcoin traders, but it also explains how much taxes are owed. In some cases, this amount may be lower than traders expected. Even so, it would be best to not ignore this letter.
It is also heartwarming to see the calculations on paper. Up until now, it was a bit unclear how the IRS would calculate owed taxes for cryptocurrency traders. That is no longer the case, as these letters are…