"

Estimated reading time: 0 minutes, 46 seconds

IRS Tells Crypto Owners “Pay Up”

The Internal Revenue Service is warning taxpayers with cryptocurrency holdings to report income and pay taxes on transactions. The IRS said by the end of August more than 10,000 taxpayers will receive letters warning them to take action if they have previously failed to report income from such transactions.

Cryptocurrency is considered property for federal tax purposes as reported in IRS Notice 2014-21 (PDF) . The agency said virtual currency is an ongoing focus area for IRS Criminal Investigation.

IRS Commissioner Chuck Retting warned in a prepared 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 started sending the educational letters to taxpayers in mid-July. There are three variations— Letter 6173, Letter 6174 or Letter 6174-A—each strives to help taxpayers understand their tax and filing obligations and correct past errors.

Read 3930 times
Rate this item
(0 votes)

Visit other PMG Sites:

Template Settings

Color

For each color, the params below will give default values
Tomato Green Blue Cyan Dark_Red Dark_Blue

Body

Background Color
Text Color

Header

Background Color

Footer

Select menu
Google Font
Body Font-size
Body Font-family
Direction
PMG360 is committed to protecting the privacy of the personal data we collect from our subscribers/agents/customers/exhibitors and sponsors. On May 25th, the European's GDPR policy will be enforced. Nothing is changing about your current settings or how your information is processed, however, we have made a few changes. We have updated our Privacy Policy and Cookie Policy to make it easier for you to understand what information we collect, how and why we collect it.