IRS Letter 6174 Crypto & Virtual Currency - IRS Crypto Tax Letter (Golding & Golding)

IRS Letter 6174 Crypto & Virtual Currency – IRS Crypto Tax Letter (Golding & Golding)

IRS Letter 6174 Crypto & Virtual Currency – IRS Crypto Tax Letter

Over the past few years, the IRS has been piecing together a comprehensive, full-court press strategy to enforce domestic and offshore cryptocurrency (and other virtual currency) tax and reporting.

The IRS seems to have learned well from its past experience with Swiss bank accounts, the Panama papers, and other domestic and offshore matters.

IRS letter 6174

In recent years, the IRS has been slowly honing in on developing practices and procedures for enforcement of cryptocurrency matters. The IRS been training its agents on many of the important issues involving blockchain, mining, forks, and other related technical matters — as well as developing a comprehensive playbook for enforcement.

This includes becoming a member of J5, in which one of the key priorities is the discovery of offshore cryptocurrency transactions.

In addition, the IRS successfully fought for the issuance of a Subpoena/Summons against Coinbase, and received more than 14,000 names of individuals who have a significant amount of cryptocurrency.

6174 IRS Cryptocurrency

When a person receives an IRS Letter 6174, it is because the Internal Revenue Service believes the recipient has ownership of, or interest in cryptocurrency and other “virtual currency.”

The letter puts the recipient on notice that the IRS is aware that he or she may have missed various transaction reporting requirements, tax liabilities, and offshore cryptocurrency compliance.

The following are links to more information on cryptocurrency guides, as prepared by Golding and Golding:

Getting Into IRS Compliance

You have options, and depending on the facts and circumstances of your situation, your options may include the streamlined program, reasonable cause, or the delinquency procedures – which may result in significantly reduced fines and penalties (and may even receive a penalty waiver).

Golding & Golding, A PLC

We have successfully represented clients in more than 1000 streamlined and voluntary disclosure submissions nationwide, and in over 70-different countries.

We are the “go-to” firm for other Attorneys, CPAs, Enrolled Agents, Accountants, and Financial Professionals across the globe.

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