The Internal Revenue Service (IRS) has recently launched a new campaign targeting crypto exchanges and their users to collect unpaid taxes. The agency is seeking to increase compliance and ensure that crypto investors report their transactions properly.
The IRS has sent out warning letters to over 10,000 people who have not reported their crypto taxes. The letters state that failure to report crypto transactions could result in penalties.
The IRS has also been targeting crypto exchanges, demanding that they provide detailed customer information. The agency is looking to identify people who may have failed to report their crypto transactions or owe taxes on them.
The IRS is also cracking down on crypto tax evasion. The agency has warned that using foreign accounts, offshore trusts, and other methods to hide taxable crypto-related income are illegal.
It is important to note that the IRS considers cryptocurrencies to be property, and thus subject to capital gains taxes. Investors must report all gains and losses from their crypto transactions on their tax return.
The IRS is serious about collecting unpaid taxes from crypto investors. The agency is sending out warning letters and targeting exchanges and users in order to ensure that everyone is paying their fair share. If you have not reported your crypto taxes, it may be best to contact a tax professional and get your records in order.
