This month, the Internal Revenue Service (IRS) may send a letter to taxpayers who deal in virtual currency or even try their hand at it. The Internal Revenue Service (IRS) has announced that they have begun sending letters to taxpayers who may have either reported their virtual currency transactions incorrectly or failed to properly report their income and tax liability.
Last week, the IRS began sending letters to taxpayers. These taxpayers' names were obtained through a variety of ongoing IRS compliance initiatives.
The letter can be written in any one of three ways: letter 6173, letter 6174, or letter 6174-A. Depending on the information the IRS has, the letters are supposedly sent to taxpayers. "[a]ll three versions aim to help taxpayers understand their tax and filing obligations and how to correct past errors," states the Internal Revenue Service. However, none of the three versions are identical; One version asserts noncompliance, while another merely states that the IRS was informed of the taxpayer's cryptocurrency activity.
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Answered 2 years ago
Naveen Ojha
This month, the Internal Revenue Service (IRS) may send a letter to taxpayers who deal in virtual currency or even try their hand at it. The Internal Revenue Service (IRS) has announced that they have begun sending letters to taxpayers who may have either reported their virtual currency transactions incorrectly or failed to properly report their income and tax liability.
Last week, the IRS began sending letters to taxpayers. These taxpayers' names were obtained through a variety of ongoing IRS compliance initiatives.
Read Also : The OASDI Program: Is OASDI the Same as Social Security?The letter can be written in any one of three ways: letter 6173, letter 6174, or letter 6174-A. Depending on the information the IRS has, the letters are supposedly sent to taxpayers. "[a]ll three versions aim to help taxpayers understand their tax and filing obligations and how to correct past errors," states the Internal Revenue Service. However, none of the three versions are identical; One version asserts noncompliance, while another merely states that the IRS was informed of the taxpayer's cryptocurrency activity.