IRS Sending Warning Letters to More Than 10,000 Cryptocurrency Holders

The Internal Revenue Service has begun sending letters to more than 10,000 cryptocurrency holders, warning about penalties for failing to report income and pay tax on transactions involving virtual currencies, reports The Wall Street Journal.

The agency expects its mailing to be completed by the end of August, according to The Journal. It is sending three variations of one letter, depending on the information it has about the recipient.

“Taxpayers should take these letters very seriously. The IRS is expanding efforts involving virtual currency, including increased use of data analytics,” said IRS Commissioner Chuck Rettig.

Oh yeah, Bitcoin is a real anti-government libertarian currency. What BS. It is about the easiest tracked form of exchange there is and about  10,000 cryptocurrency traders are about to find out about that.

UPDATE

Via CNN:

On social media, some people who claim to have received the letters say that one version simply asks taxpayers to review their returns and file an amended one if necessary. Another is a more serious warning of possible noncompliance with US tax law and potential IRS enforcement. And a third requires a response, or the recipient will be audited.

-RW