DID YOU RECEIVE IRS LETTER 6174, 6174-A, OR 6173? IF YES, READ ON!
If you received one of the three variations of these letters that relate to virtual currency, all three versions are putting you on notice that you need to correct your tax and filing obligations due to omission of income.
Others may have received a CP2000 or CP2501 notice with an assessment; this is because the IRS received a 1099-K about your crypto trading and have recalculated your income tax return. Yes, the assessments are outrageous for more reasons than one, but suffice it to say that IRS does not have your basis/cost so they are essentially taxing the full amount of your gross trades, so don’t panic! Your overall liability may likely be lower that the proposed amount on the notice or possibly result in a loss after you complete your amendment.
What should you do if you did not report crypto on your tax return?
If you did not report the crypto trades on your tax return and you received one of these letters, you will need to amend your income tax returns and respond to the IRS notice.
Our team of crypto Tax Accountants can help you get in compliance so you can sleep better tonight! Give us a call today or drop us an email. Let us discuss how to respond to the IRS and get you in compliance.
We are Enrolled Agents with experience in Tax preparation, IRS and State Representation and other consulting services. We have acquired a rare combination of talent and experience which is highly sought after in the modern tax consultation marketplace. Enrolled Agents are versed in the tax law; we keep abreast of the constantly changing IRS rules and regulations. As federally-authorized tax practitioners, we have technical expertise in the field to represent taxpayers before all administrative levels of the IRS and state taxing authorities.
We are proud to tell you that we provide personal service which is why our customers come back year after year and constantly refer their friends and family. We are ecstatic to add you to our growing clientele.