Cryptocurrency News Today: The IRS won’t stop until it collects all the cryptocurrency tax it’s owed

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Cryptocurrency News Today: The IRS won’t stop until it collects all the cryptocurrency tax it’s owed

They said the government couldn’t control it. They said it could never be regulated. But as certain as death, they will try to tax it. And it seems the US Internal Revenue Service (IRS) won’t rest until it’s got every last tax dollar from Cryptocurrency traders.

The IRS is sending another round of letters to known Cryptocurrency traders advising them that they’ve filed their taxes incorrectly, CoinDesk reports.

In one instance, a taxpayer owed nearly $3,900 for 2017, that’s $3,600 in tax and about another $200 in interest. The letter, seen by CoinDesk, was dated July 29, 2019.

This latest round of communication comes just a few weeks after the IRS first sent “educational letters” to Cryptocurrency owners to advise them of any tax they might owe.

The IRS said it sent letters to “more than 10,000 taxpayers” that it had identified as possibly owing tax on their Cryptocurrency holdings.

While the letters might sound like harbingers of doom, they are more advisory in nature; recipients are under no obligation to pay. However, recipients will have to provide supporting documentation that demonstrates why they’re not liable for the tax if they refuse to pay.

The IRS is reportedly gathering information about tax payers through Coinbase,

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