Last week, the IRS began sending educational letters to taxpayers with virtual currency transactions that potentially failed to report income and pay the resulting tax from virtual currency transactions or did not report their transactions properly.
There are three versions of the letter, all of which aim to help these taxpayers understand their tax obligations and how to correct errors in reporting. Recipients are also directed to information on the IRS website that pertains to their situation, including forms, and schedules.
It is estimated that more than 10,000 taxpayers will receive these messages by the end of August.
If you received one of these letters, do not ignore. Please contact me for a free consultation to understand your reporting and filing options.
