In the latest turn of events, Internal Revenue Services (IRS) of the United States is sending warning notices to cryptocurrency owners in the country.
The United States has remained a forerunner in its crypto regulations ever since they were launched and continues to pioneer their regulation in recent times.
The United States Securities and Exchange Commission (SEC), the Internal Revenue Service (IRS) and other financial regulators work earnestly to make sure the policies are updated to keep secure all digital and traditional financial assets and services.
Currently, the United States Internal Revenue Service has started sending letters to cryptocurrency holders to inform them about their taxes. These letters also advise taxpayers to pay all taxes that they owe as well as informing them about amended tax files.
The agency labeling these letters as educational letters have started emailing them and claims that such emails will be sent to more than ten thousand taxpayers before the end of this month.
There are three variants of these letters that were being mailed. Data regarding these taxpayers were collected through several IRS compliance efforts and then they were accordingly sent a variant of the educational letter.
IRS Commissioner Chuck Rettig stated that taxpayers should take these letters very seriously and should start paying their taxes that are due as well as arrears, interests, and penalties if needed. He then informed that the agency is now expanding its focus towards cryptocurrencies and other digital assets through the use of data analytics.
According to various sources, the IRS began its work on working towards cryptocurrency guidance in May. This was the first time the agency was invested in cryptocurrencies since 2014. The move was a result of callings by various organizations that requested the agency to update its guidance towards cryptocurrencies.
Last Thursday one subreddit user described receiving such a letter while various lawyers have recorded their clients receiving such letters.