The Internal Revenue Service of the USA (IRS) sent a new round of letters warning users. This time, the focus was investors that the agency believes have incorrectly reported their transactions.
In addition to letters sent last month to cryptocurrency traders who warned them that they could have paid their taxes incorrectly, the IRS is now also telling certain investors that they have, in fact, reported the wrong amount and are looking for the right taxes.
Coindesk had access to a letter dated July 29 from a taxpayer who owed almost $ 3,800 for the fiscal year 2017. This taxpayer owed more than $ 3,600 in tax alone, with another $ 200 in accrued interest.
Chandan Lodha, a tax expert, spoke with Coindesk and said the IRS has sent these letters to show taxpayers that they are at potential risk for not filing taxes correctly.
According to him, the letter shows that the Federal Revenue has a report of some financial institution used by the taxpayer reporting different amounts from that reported by him. Letters must be answered within 30 days, whether or not they agree with the content. If the taxpayer disagrees, he should respond in the same way and ask the financial institution for a corrected statement.
Lodha added that transfers from one exchange to another portfolio should not be a taxable event, but maybe occurring as brokerages may report as such.
According to the letter shared with CoinDesk, the beneficiary reported $ 0 in revenue from cryptocurrency transactions for revenue in the fiscal year 2017. However, the information provided by Coinbase, the taxpayer’s financial institution at the time, indicated that he should have reported more than $ 12,000 in revenue.