US crypto traders receive CP2000 notice from tax authority

Posted 15 August, 2019

The US Internal Revenue Service has sent another letter of requests to traders dealing with cryptocurrencies intending to get exact sums of money that were not paid to the state, as The Block reported.

IRS sends its notice CP2000 when it detects discrepancies between records provided by a taxpayer and figures received from independent sources.

The letter contains the sum that the IRS believes to be a possible unpaid to the state by a US resident.

Besides, traders that received CP2000 should not ignore it since such actions can entail fines and extra fees. At the same time, the figures in the notice can be challenged within 30 days beginning from the date of receiving.

Earlier, US tax authority sent thousands of letters stating that investors should declare crypto income. 

One of market player pointed out that these letters were nothing against the notice CP2000, as the latter bears real figures that must be paid.

At the same time, some a seniore researcer from Coin Center  expressed certain doubts about this form:

“The 1099-K… isn’t really a good fit for reporting cryptocurrency tax information,” said senior research fellow James Foust, who specializes in cryptocurrency taxation

Notably, there is no information regarding the number of letters that have been already sent.

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