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American crypto traders received “letters of happiness” from tax

Cryptocurrency Americans have received notifications from the United States Internal Revenue Service (IRS). This is not the first such distribution to crypto traders, however, it differs from the previous ones by the fact that this time the document indicates the amount of taxes unpaid to the US Treasury for trading a digital asset.

According to The Block, a notification in the form of CP2000, namely, such a document was received by traders, is provided for cases when inconsistencies are found between the information transmitted by taxpayers and information that the department receives from independent sources. However, the recipients of “letters of happiness” can appeal the indicated amount within 30 days.

In one of these notices, which fell into the possession of The Block, the information used by the IRS to calculate the amount of tax payable was obtained from form 1099-K, drawn up by some exchanges that report customer transactions that exceed a certain threshold. In this form, however, only the total volume of transactions is indicated, but not the profit of a particular trader.

“Form 1099-K is not too good for tax reporting. But in its notices, the IRS only mentions forms 1099-K and 1099-MISC. I suspect that exchanges transmit this information in the absence of clear guidelines, ”said James Fust, Coin Center analyst.


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