Cryptocurrency holders in the United States need to act soon following IRS 6173 Letter
- IRS 6173 letter titled “Reporting Virtual Currency Transactions must be responded to by U.S. cryptocurrency holders.
- The tax authority did send out some 10,000 letters, expecting people that may have failed to report the crypto income.
Back in July, the United States Internal Revenue Service (IRS) distributed around 10,000 letters to holders of cryptocurrencies regarding their portfolios.
The IRS wants taxpayers with digital currency transactions that may have potentially failed to report the income and pay the resulting tax from digital currency transactions or did not report their transactions properly.
In terms of the people that have already received letter 6173, which is titled “Reporting Virtual Currency Transactions”, now have just under a week to reply to the IRS.
Recipients are required to respond to this letter within 30 days of the date listed on the letter and requires all crypto transactions between the years of 2013 to 2017 be reported. Reports must include transactions between wallets and exchanges.
Author
Ken Chigbo
Independent Analyst
Ken has over 8 years exposure to the financial markets. He started his career as an analyst, covering a variety of asset classes; forex, fixed income, commodities and equities.
