Crypto Tax Avoiders Face IRS Roulette: Fess Up or Try to Hide (1)

Aug. 1, 2019, 8:45 AMUpdated: Aug. 1, 2019, 7:54 PM

More than 10,000 cryptocurrency investors face a decision as they open letters from the Internal Revenue Service informing them that they may owe taxes on their digital holdings.

Should they quickly file amended tax returns correcting prior omissions or mistakes and hope that’s enough to avert an audit? Should big-time dodgers come forward and acknowledge their actions—all while risking that the IRS might audit them or charge them with criminal tax evasion?

What about investors who didn’t get a letter, but think they might have failed to report some cryptocurrency investments? Should they quickly sneak in an amended or delinquent ...

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