Individuals who the IRS pressed for details on their cryptocurrency holdings aren’t finding it too difficult to get their tax positions approved—as long as they can provide supporting documentation.
The IRS over the summer contacted more than 10,000 crypto investors as part of the agency’s increased focus on compliance. Recent acceptance letters issued to some taxpayers reinforce the agency’s message that it is more concerned about individuals who aren’t disclosing digital transactions at all, rather than those who try to comply but miss the mark.
The IRS declined to comment on the letters, but practitioners said, in some ...