Bloomberg Tax
Aug. 15, 2019, 7:40 PM

IRS Sends Second Round Tax Warnings to Cryptocurrency Investors

Some cryptocurrency investors are receiving a new round of letters from the Internal Revenue Service telling them that their federal tax returns don’t match the information received from virtual currency exchanges, a new front in the agency’s burgeoning scrutiny of the industry.

The letters acknowledge that trading exchanges, not the taxpayers, may have made the errors.

The letters are a fresh signal that the IRS is increasing its focus on cryptocurrency tax compliance, after first being slow to stay abreast of the growing industry.

The agency’s top criminal chief has described digital and virtual currencies as a “significant threat” to ...

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