US taxpayers who have received letters from the IRS should check the correspondence carefully before they proceed to part with their crypto earnings to pay taxes. Scammers are active again and this time, they are sending fake IRS letters to taxpayers to trick them into giving money.
Real Tax Notices Vs Fake Tax Notices
Scammers have jumped at this opportunity of fear, uncertainty, and doubt, and they are sending fake notices to taxpayers to swindle them. They have tried to replicate the real tax notices as closely as possible, which is why it becomes easy for unsuspecting tax payers to fall for their trap. The letters often come with a threat of IRS lien wherein the tax agency has a legal claim to the property of the concerned individual for securing payment of their tax liability.
The letter may come with a levy based on fake delinquent taxes owed to an agency called the “Bureau of Tax Enforcement.” It is to be noted that there is no tax agency in the US that goes by this name. Sometimes, the letters also have correct information on real tax debts. In that case, the recipient should check the letter thoroughly to ensure that the letter is authentic.
Cryptocurrency Holders Receiving Tax Notices from IRS
It is true that cryptocurrency holders are receiving letters from the IRS informing them about rules around taxation and asking them to ensure that they have provided correct information about their incomes. In case they haven’t, they are instructed to amend their tax returns or pay late returns. Failure to do the needful may result in tax, penalties, interest, or even criminal prosecution.
“Taxpayers who do not properly report the income tax consequences of virtual currency transactions are, when appropriate, liable for tax, penalties, and interest. In some cases, taxpayers could be subject to criminal prosecution.”
The IRS has also warned that it will conduct audits of the filed returns.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
All things Blockchain & Crypto. 3 years for writing for Crypto Publications, ICOs and Blockchain cos. Book Junkie. Travel Freak. Food rules my mood. Enough said. Follow me on twitter @vinniesingh7 or mail me at vinnie[at]squadx.io