IRS Crypto Letters Surge 758% in 60 Days, CoinLedger Warns of Looming Crackdown
IRS Crypto Letters Soar More than 750% in 60 Days
American cryptocurrency investors are receiving IRS warning letters in record volumes. The notices out have surged 758% in the past two months alone, according to CoinLedger. The trend was confirmed by the firm’s CEO, David Kemmerer, in a statement to The Block, with tax experts also reporting the spike.
Everyday Investors Left in the Dark
CoinLedger tax expert Ben Yoder noted that most of those who were targeted keep crypto in a passive position and believed they already paid taxes. Errors of wallet-to-wallet transfers or failing to provide cost basis information have a way of triggering IRS suspicions even without tax evasion.
What the IRS Letters Mean
The most frequent notice sent out, IRS Notice 6174, is informational. But stricter notices, such as 6173 and CP2000, demand action and can lead to audits or penalties. CoinLedger advises the recipient not to ignore such an alert and obtain professional advice.
New Rules on the Horizon
Kemmerer is convinced the increase in letters can be an indicator of a larger IRS enforcement wave before 2026, the year when the new Form 1099-DA guidelines become applicable. Under these guidelines, crypto brokers will have to report gain/loss information with higher accuracy.
Political Noise, Legal Reality
Despite the public support from former President Donald Trump for reversing crypto taxes, no legislation has been passed. Crypto analyst Adam Cochran recently mocked news that an executive order could exempt tax expenses, again explaining that congressional approval would be required. Trump did move back an IRS rule earlier this year that would have categorized DeFi platforms as brokers.
Stay Prepared: CoinLedger’s Advice
With regulatory heat intensifying, CoinLedger is urging crypto consumers to maintain accurate records of transactions, monitor all taxable events, and seek professional help when in the IRS spotlight. The news is out: crypto tax compliance is no longer a nicety—it’s a necessity.
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IRS Crypto Letters Surge 758% in 60 Days, CoinLedger Warns of Looming Crackdown
IRS Crypto Letters Soar More than 750% in 60 Days
American cryptocurrency investors are receiving IRS warning letters in record volumes. The notices out have surged 758% in the past two months alone, according to CoinLedger. The trend was confirmed by the firm’s CEO, David Kemmerer, in a statement to The Block, with tax experts also reporting the spike.
Everyday Investors Left in the Dark
CoinLedger tax expert Ben Yoder noted that most of those who were targeted keep crypto in a passive position and believed they already paid taxes. Errors of wallet-to-wallet transfers or failing to provide cost basis information have a way of triggering IRS suspicions even without tax evasion.
What the IRS Letters Mean
The most frequent notice sent out, IRS Notice 6174, is informational. But stricter notices, such as 6173 and CP2000, demand action and can lead to audits or penalties. CoinLedger advises the recipient not to ignore such an alert and obtain professional advice.
New Rules on the Horizon
Kemmerer is convinced the increase in letters can be an indicator of a larger IRS enforcement wave before 2026, the year when the new Form 1099-DA guidelines become applicable. Under these guidelines, crypto brokers will have to report gain/loss information with higher accuracy.
Political Noise, Legal Reality
Despite the public support from former President Donald Trump for reversing crypto taxes, no legislation has been passed. Crypto analyst Adam Cochran recently mocked news that an executive order could exempt tax expenses, again explaining that congressional approval would be required. Trump did move back an IRS rule earlier this year that would have categorized DeFi platforms as brokers.
Stay Prepared: CoinLedger’s Advice
With regulatory heat intensifying, CoinLedger is urging crypto consumers to maintain accurate records of transactions, monitor all taxable events, and seek professional help when in the IRS spotlight. The news is out: crypto tax compliance is no longer a nicety—it’s a necessity.
Read More
XRP Price Surges After Ripple Drops Cross Appeal Against SEC