If you dealt in virtual currency in recent years, you may soon receive a letter from the IRS regarding a potential failure to report income and pay related taxes, according to a recent IRS announcement. The federal tax agency is beginning to reach out to taxpayers as part of the virtual currency compliance campaign it announced last year.
"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," said IRS Commissioner Chuck Rettig. "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."
Click here to read the recent IRS press release. We previously wrote about the tax implications of bitcoin and digital currency here: https://www.williamslawassociates.com/blog/2018/03/remember-to-report-your-virtual-currency-transactions.shtml and here: https://www.williamslawassociates.com/blog/2016/12/irs-takes-action-to-enforce-taxation-of-virtual-currency.shtml.
To discuss your options for digital currency tax compliance, contact one of our attorneys today!