U.S. Internal Revenue Service Requires Cryptocurrency Owners to Pay Taxes

The United States pays special attention to the taxation of crypto activities. In particular, the US tax administration sent 10 thousand notifications to coin holders with a request to pay taxes. This became possible after the tax authorities received information about financial transactions from the Coinbase crypto wallet of one of the users.

Thus, the IRS once again reminds crypto enthusiasts that cryptocurrencies are subject to taxation in the country. Federal laws equate crypto assets with securities. Therefore, cryptocurrency holders have to pay taxes on each transaction.

The IRS has sent three types of letters to cryptocurrency holders. The letter No. 6173 is of particular interest. In it, the tax authorities demanded that the taxpayer submit an overdue declaration, or indicate in which declaration the cryptocurrencies were declared earlier. In this case, if the payer refuses to pay taxes or provides incorrect information, a case will be brought against him.

This event is important for the entire crypto business in the USA. Representatives of the IRS made it clear that they would not allow tax evasion in the cryptosphere, and would not allow to be engaged in money laundering. The defaulters will not be able to hide from the persecution. If a company or an individual refuses to pay taxes, then the IRS will push things along in court, and then the non-payer will also have to pay the legal costs.

If you work in the US cryptosphere and received a letter from the IRS, you will definitely have to answer it. Law&Trust lawyers offer assistance in resolving disputes with United States tax authorities. We will advise you on issues of crypto activities in the jurisdiction, as well as help you obtain a cryptocurrency license in the United States.