The IRS is advising them to pay any back taxes they may owe or to file amended tax returns regarding their holdings. Moreover, the agency said that it began mailing what it called “educational letters” to “more than 10,000 taxpayers” by the end of July, 2019,” adding that “the names of these taxpayers were obtained through various ongoing IRS compliance efforts”, according to CoinDesk.
In May 2019, it was reported that the IRS is beginning to work on new guidance regarding cryptocurrencies, its first such effort since 2014. A number of organisations and industry advocates have called on the agency in past years to update its guidance following its decision to treat cryptocurrencies as a form of intangible property for tax purposes.
Lawyer Tyson Cross, writing for Forbes, detailed how a number of his crypto-focused clients have received this kind of letter from the IRS, the online publication added.
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