The coming altcoin news put the Internal Revenue Service (IRS) in the focus. As we can see from the news in the United States, the IRS began sending letters to people with digital currency transactions who have apparently failed to report income and pay taxes – or who did not report any of their transactions properly.
As the report shows, more than 10,000 taxpayers by the end of August will receive these letters – the IRS said when obtaining the compliance efforts. According to the head of the agency, the IRS already began sending the letters. The Commissioner Chuck Rettig 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. 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 latest cryptocurrency news show that there are three versions of the IRS missive. Now that IRS began sending letters to people who failed to report or pay their crypto taxes, the three main types of the IRS missive include Letter 6173, Letter 6174 or Letter 6174-A – all stressing their tax and filing obligations and how to correct the past errors.
The altcoin news also show that people can refer to information shared on IRS.gov which includes forms and schedules, which ones to use and where to send them. Recipients of the IRs letter are on notice as IRS began sending letters – and the agency thinks that they may need to report. So, many best cryptocurrency news sites advise people now to take a look at what they reported and fix whatever they missed.
What’s more important is the fact that even though you did not receive one of these IRS letters, you should definitely consider doing the same thing. Amending the tax returns to ask for big tax refunds is an audit trigger – and every user should be careful with the IRS.
This comes in time when cryptocurrency is an ongoing focus area for IRS criminal investigation.
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