Needless to say if a taxpayer receives one of these letters, then there is a reason why the IRS sent it to them. Starting in 2018, the IRS required some of the larger cryptocurrency banks to report to them data on various account holders. So it would follow suit that these letters come in response to this information. If you are one of the taxpayers that ends up receiving these letters, it is imperative that you consider the ramifications to responding or not responding to these letters.
However, please note that this decision does not need to be made solely by you. Our firm has experience in dealing with cryptocurrency and as such is fully able to help with this sort of decision making. Depending on your situation, we can communicate with you regarding the next best steps so as to put your mind at ease and to avoid any future problems with the IRS. If you would like to know more, please feel free to reach out to us and we would be more than happy to help.
If you would like to see examples of the letters that are to be sent off and the original IRS news release, please follow the link below.