pthe staff of the Ridgewood blog
Ridgewood NJ , according to CPA James Brown the IRS announced in late July 2019 that it is ramping up its campaign to ensure that taxpayers with cryptocurrency transactions report these transactions on their income tax returns – and report them correctly – by sending “educational” letters to approximately 10,000 taxpayers who either didn’t report their crypto-transactions or may have reported them incorrectly.
The IRS said it used its compliance efforts to identify the taxpayers who may be noncompliant. Because fewer than 900 taxpayers reported virtual currency gains and losses each year on their tax returns from 2013 to 2015, the IRS stepped up enforcement of the rules. As part of that effort, the IRS got court approval in March 2018 for a summons to obtain account and transaction information on more than 14,000 customers from Coinbase, a company that services buyers and sellers of Bitcoin. Although the IRS didn’t say so in its recent announcement, presumably the leads for the 10,000 taxpayers who will receive a letter came from this source.
Continue reading IRS Cracking Down on Cryptocurrency Tax Transactions
