Cryptocurrency owners may owe back-taxes

The Internal Revenue Service is warning more than 10,000 holders of cryptocurrency that they may be subject to penalties for skirting taxes on their virtual investments.

The IRS has begun sending letters to taxpayers who potentially failed to report income and pay taxes on cryptocurrency transactions. The IRS said it obtained the names of the taxpayers through “various ongoing IRS compliance efforts.”

“Taxpayers should take these letters very seriously by reviewing their tax filings and when appropriate, amend past returns and pay back taxes, interest and penalties,” IRS Commissioner Charles Rettig said

If you have received a letter from the IRS, or are concerned you may owe back-taxes on your cryptocurrency holdings, contact your ShindelRock tax professional or visit our crypto tax page for more information.