IRS is mailing Tax Warning notes to digital asset users

by in Cryptocurrency News


According to the posts on social media, the Internal Revenue Service is directing crypto tax warning notes (dated August 14, 2020) to US taxpayers. This proves another time that the government makes efforts to take the crypto tax space under control.

Some users published their letters online. The essence of them was that all the transactions must be accurately reported, otherwise enforcement activities like penalties will be organized. In the US digital assets are subject to tax paying. Anyway, in return to the new letters, users made complaints saying that IRS illegally gained access to their data. Users are saying, “The way Internal Revenue Service attempts to peek into a person’s papers without any judicial process is unacceptable”.

Getting familiar with all the arguments provided by both sides, we can conclude that the process is pretty complicated. Anyway, for now, the crypto assets are taxable and users need to know their rights and responsibilities well.