IRS sending warning letters to U.S. crypto investors, prompting inquiries and uncertainty

From Yahoo Finance: 2025-06-29 09:40:00

The IRS has sent a surge of warning letters to U.S. crypto investors in regards to their digital asset investments, with an increase over the past year according to three crypto tax experts. CoinLedger experienced a ninefold increase in users asking about the letters from May to June 2024, with close to 800 support conversations. Two crypto tax attorneys have noted a rise in inquiries about the letters compared to 2024. The IRS has not seen such an uptick in crypto inquiries since 2020 and 2021 when thousands of customer records were obtained from Coinbase. Recipients of IRS letters are advised to check if they’ve correctly reported their crypto transactions, without being required to respond. However, in a third type of IRS letter, recipients are instructed to respond with new or amended tax returns, or an explanation of their reported transactions. The reason for the increase in inquiries about IRS letters in 2025 remains unknown, but recent recipients had accounts on Poloniex. The IRS did not provide an immediate comment on the matter.



Read more at Yahoo Finance: Bitcoin and crypto investors hit with flood of IRS letters, say tax experts