estate taxpayers: One version asks recipients to sign a statement declaring, under the penalty of perjury, that they are in compliance with tax rules that treat digital currencies like bitcoin as investment property akin to stocks or real estate, according to The Guardian. Taxpayers should take these letters very seriously. The Internal Revenue Service has begun mailing more than 10,000 letters to cryptocurrency holders warning of stiff penalties if they fail to report income or pay tax on crypto transactions. 32m stolen from Tokyo cryptocurrency exchange in latest hack Read more The service is sending out three variations of one letter, depending on the information it has on the recipient, reported the Wall Street Journal. The IRS is expanding efforts involving virtual currency, including increased use of data analytics, said the IRS commissioner, Chuck Rettig. Coinbase, a digital currency exchange, handed the database over to the IRS in March 2018 under a federal court order. The list of names appears to come from a database containing 13,000 accounts holders who have bought, sold, sent or received digital currency worth 20,000 or more between 2013 and 2015.
(news.financializer.com). As
reported in the news.
Tagged under estate taxpayers, taxpayers topics.