Bloomberg Tax
Free Newsletter Sign Up
Bloomberg Tax
Welcome
Go
Free Newsletter Sign Up

IRS Has Sent 10,000 Letters on Taxpayer Digital Assets

March 2, 2022, 8:06 PM

The Internal Revenue Service has sent some 10,000 letters to taxpayers engaged in digital asset transactions since it required taxpayers to report ownership in 2020, an agency official said Wednesday.

If taxpayers receive such a letter, they shouldn’t ignore it, said Carolyn Schenck, national fraud counsel of the IRS Fraud Enforcement Program. “You are now on notice that the IRS knows about your digital assets,” Schenk said during a webinar. The agency’s criminal investigation division has robust tools to track if taxpayers hold, sell, or buy digital assets such as Bitcoin, she said.

  • The agency has included a question about ...