The IRS Tells Crypto Traders How Much They Own The Government
Form CP2000 notification is provided for when inconsistencies are found between the transmitted taxpayers information and information, which department receives of independent sources. The amount indicated in the letters corresponds to the estimated arrears, however taxpayers may protest her within 30 days of receiving the notification.
In July the IRS reported about mailing 10 000 letters of “educational nature” in which they urged the holders of cryptocurrencies to declare income from trade digital assets due way.
By words CoinTracker co-founder Chandana Loda, new the mailing is not related to the previous one.
“CP2000 is more strict form, than those 10,000 letters in Tom plan that it indicates the exact amount that, according to IRS is required to pay. it already no warning common character “, – explained is he.
In one of these notices made available to The Block, the information used by the IRS to calculate the tax payable, was received from Form 1099-K issued by some exchanges that report about transactions clients, exceeding a certain threshold. In this form, but, indicated only cumulative volume transactions, but not arrived a specific trader.
“The 1099-K shape is not very good for tax reporting, ” said Coin Center analyst James Fust. – But in their IRS notices only mention Forms 1099-K and 1099-MISC. I suspect that exchanges convey this information in the absence of clear guidelines “.