US Crypto Holders Only Have a Few Days to Reply to the IRS 6173 Letter
Or Lokay Cohen's original article for cointelegraph.com reduced by 42%
The IRS has begun sending letters to taxpayers with digital currency transactions that potentially failed to report income and pay the resulting tax from digital currency transactions or did not report their transactions properly. Those who already received letter 6173, titled "Reporting Virtual Currency Transactions" on July 16 now have less than a week to reply to the IRS. The most serious of the trio of letters that were disseminated, 6173 requires immediate action.
If recipients do not respond to this letter in time, their tax accounts will be audited by 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. Recipients of letter 6173 have the following options:If you failed to report for one year or all years from 2013-2017.Submit delinquent returns as soon as possible.
Due to a lack of knowledge regarding crypto tax practices, many who reported in the early years of crypto did not submit an accurate report. File an amended return on incorrect calculations from 2013-2017 by submitting IRS tax Form 1040X.If you believe you have accurately and completely filed your reports with the IRS.Submit an affidavit stating that you have filed the entire history of currency operations, including the means taken to ensure compliance with IRS requirements. Regardless of the letter you received and the steps you are advised to take, it is recommended that you consult with a tax professional to assist in compiling an accurate and comprehensive report.
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