The United States Revenue Service (IRS) has announced earlier today, July 26, that it has started distributing letters to various cryptocurrency holders across the state, admonishing them to pay up outstanding taxes owed to the state or file for amended tax returns for their cryptocurrency holdings.
Per the report, the IRS disclosed that it had started mailing what was termed as “educational letters” to cryptocurrency holders over the past week. The IRS also revealed that the letters were mailed in three variations.
The agency (IRS) added that it is working towards getting the letters across to over 10,000 taxpayers by the end of the month, saying that “the names of these taxpayers were obtained through various ongoing IRS compliance efforts.”
IRS Commissioner, Chuk Retting, while commenting on the development said, “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.” He also added that,
“The IRS is expanding its 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.”
Corroborating this development, a user of the r/bitcoin subreddit on Thursday, described receiving such letter. Also, a lawyer writing for Forbes, Tyson Cross, revealed that some of his crypto-related clients confirmed receiving such letter from the IRS.