IRS Steps Up Efforts to Target U.S. Taxpayers Who Failed to Report and Pay Taxes on Cryptocurrency Transactions

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IRS Steps Up Efforts to Target U.S. Taxpayers Who Failed to Report and Pay Taxes on Cryptocurrency Transactions
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The IRS continues to chase unpaid cryptocurrency taxes with a new court order allowing a summons for customer records.

"I'm curious to see what happens with all this data they're collecting," said Metras, noting that the IRS may try to match it with investors' tax returns.question about"virtual currency"However, there's still uncertainty about how to answer the question, explained Yu-Ting Wang, vice chair of the virtual currency task force for the Association of International Certified Professional Accountants.

But tax professionals are still seeking guidance on the definition of"broker" to know which companies must comply, Wang said.Regardless of which companies report activity to the IRS, experts sayIf you haven't reported cryptocurrency income on past tax returns, you should speak with a tax professional with digital currency expertise, Wang suggested.

"It is much better to come forward and file an amendment than to let the IRS audit you — or potentially even worse, for not reporting crypto," Gordon said.

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