U.S IRS Warns Crypto Holders to Pay Up Taxes

Wilfred Michael 

Wilfred Michael

News reporter

26 July 2019,
22:03
U.S IRS Warns Crypto Holders to Pay Up Taxes

The United States Internal Revenue Service (IRS) is ramping up efforts to get crypto holders to pay taxes related to their investments in the new asset class, according to a news bulletin published by the agency, today July 26.

Basically, the IRS in supposed “educational letters” sent to crypto holders require that these people pay any taxes they owe or file amended tax returns related to their crypto investments. 

Three variations of the letters were reportedly sent out by the IRS with the ultimate goal being to send more than 10,000 of such messages to taxpayers whose names “were obtained through various ongoing IRS compliance efforts.”

Before the end of August, the IRS said it would have reached that target of more than 10,000 letters. 

Speaking in a statement, Commissioner Chuck Rettig reiterated that crypto holders must take the letters seriously, and comply with what the IRS asked of them.

“Taxpayers should take these letters very seriously by reviewing their tax filings and when appropriate, amend past returns and pay back taxes, interest and penalties [..] We are focused on enforcing the law and helping taxpayers fully understand and meet their obligations,” the Commissioner said.

Uninterestingly, the latest effort by the IRS to clampdown on crypto tax evaders follows a May update by the agency that they are working on a guide for individuals filing crypto tax reports.

That update as Stmarket.co reported then followed an inquiry letter sent to the agency, by U.S Rep Tom Emmer and other twenty other Congressmen. The lawmakers requested that the IRS provided clarification regarding how crypto holders should “calculate and track the basis” of their assets. 

However, that clarity hasn’t been provided with the IRS still promising in the statement that it would “issue additional legal guidance in this area in the near future.”

 

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