International revenue service which is located in the united states has started sending certain warning letters to the owners of crypto-currency. The subject matter of such letters demand the cleaning of the debts from the insolvent owners and pay the fine if let any.
It was discovered that in a news bulletin, the IRS has made confessions regarding the sending of letters which they call “educational letters”. To be in accordance with this statement, there are three variations in this letter. They have also said that such letters have been sent to over thousands of taxpayers and they will have such letters sent to many more by the end of this month, hoping that the taxpayers would be taking the letters seriously else would have to suffer severe penalties. To quote IRS Commissioner,
“The IRS is expanding our efforts involving virtual currency, including increased use of data analytics. We are focused on enforcing the law and helping taxpayers fully understand and meet their obligations.”
It has been unearthed by IRS that there are many who own crypto-currencies and are involved in businesses but skive paying the tax on time. They have now decided to act upon this seriously and etch out all the payments that are yet to be done by the crypto owners. They have formulated some strict guidance they say so that all the payments are done on time from the next time, avoiding problems and confusions later. Anyone failing to adhere to such guidelines would be penalized immediately. It has been making the same efforts since the year 2014. Their clients are of the opinion that they fail to update the list of guidelines. However, this time, they have done it, unfailingly.
A writer of the popular magazine Forbes named Lawyer Tyson Cross has also written about such guidelines of IRS in Forbes, at length. There are many other clients who have reported of the same reception of such letters.