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Synopsis
CoinLedger reports a staggering 758% increase in IRS warning letters sent to U.S. crypto investors in the last 60 days, with many recipients confused despite believing their tax filings were correct.
Recent reports indicate a significant rise in IRS warning letters to cryptocurrency investors, with CoinLedger noting a 758% increase over the past two months. This surge has been corroborated by accounting firms, highlighting the confusion among everyday investors who thought they had filed their taxes correctly. Common issues leading to these alerts include wallet-to-wallet transfers and missing cost basis data. The most frequently issued letter, IRS Notice 6174, serves as an educational notice, while more serious letters like 6173 and CP2000 may necessitate responses and could trigger audits. CoinLedger’s CEO, David Kemmerer, warns that this uptick may signal a broader enforcement initiative ahead of new Form 1099-DA regulations set to take effect in 2026. Despite former President Donald Trump’s advocacy for eliminating crypto taxes, no legislative changes have been enacted, and any tax reform would require congressional approval. As scrutiny increases, CoinLedger advises investors to keep meticulous records and seek professional assistance if they receive serious IRS communications.
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IRS Crypto Warning Letters Surge by 758%
CoinLedger reports a staggering 758% increase in IRS warning letters sent to U.S. crypto investors in the last 60 days, with many recipients confused despite believing their tax filings were correct.