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    IRS Source: Cryptocurrency Holders and Traders to be Audited by US Tax Collection Agency

    Cryptocurrency users to expect more audit notices to be filed and sent out to bitcoiners as the Internal Revenue Service (IRS) tax collection agency ups the urgency to audit investors.

    A trusted source has confirmed that the Internal Revenue Service is going to conduct audits on cryptocurrency activities. The source said that the tax collection agency is planning to unleash a batch of audit notices. These new notices will be follow-ups to 10,000 letters that were initially sent in August.

    The IRS has been focusing their attention on the cryptocurrency industry, and soon, audits will be done in the industry. Not many Americans were sure of what was entailed in the 10,000 letters sent in August.

    However, multiple reports emerging show the IRS is increasing its review and investigations on substantial crypto investors. A statement by BeInCrypto stated that there was a new checkbox on 1040 form that asked individuals to avail information on whether they had exchanged, sent, or received any digital currency since 2013.

    It was also well noted that failure to answer that question with utmost honesty would be a criminal offense. Many people were amazed because not only did this kind of study target the traders, but the holders also seemed to be a target here.

    Audit Notices to Crytpo Users

    Crypto Tax Girl reported that Judith McNamara who works with the IRS confirmed that the tax collection agency is going to send more audit notices. It is, however, uncertain whether everyone who received the August letter will secure an audit notice for the second time.

    Letters sent out in August differed in what they required the recipients to do. Some were a kind of notification that the IRS was aware they were holding the cryptocurrency. Other letters demanded a proper response from the recipients and immediate action. This time around, however, it is expected that audit letters will dictate that there must be a response to the letter.

    The IRS has been heavily criticized for using the old laws on new concepts and technologies such as cryptocurrencies. Clearly, the IRS is not welcome in the digital currencies space.

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    Daniel W
    Daniel W
    Daniel Wambugu writes daily cryptocurrency and blockchain related articles BitcoinExchangeGuide. His articles have appeared in numerous blogs, media publications, and community forums. He prides himself on once being a beginner and uses his experience to deliver high-quality insightful content for our dear readers. With a knack for reviewing ICOs or researching news, Daniel plans to continue being a top contributor for many years to come.

    [Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

    [Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

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