The crypto trade finally seems to be falling in regulation in the US, as authorities start to tighten their grip on crypto trade and digital currency owners. In a statement released on Friday, the Internal Revenue Services (IRS) of the US said that it has started sending letters to crypto owners in the country, asking them to pay any impending taxes, or else file tax returns regarding their holdings.
In the statement on its official website, IRS stated that it started sending the letters to defaulters last week, and over 10,000 such people will receive these letters till the end of August. IRS Commissioner Chuck Retting said,
Taxpayers should take these letters very seriously by reviewing their tax filings and when appropriate, amend past returns and pay back taxes, interest, and penalties. The IRS is expanding our efforts involving virtual currency, including increased use of data analytics.
He also added that the agency is focused on implementing the law, and will fully help the taxpayers to understand the law and fulfill their obligations. Three categories of letters are being sent to the taxpayers, Letter 6173, Letter 6174, and Letter 6174A.
Regulators around the world are making serious efforts to regularize the crypto industry, and the US is among the forerunners. Especially, after the unveiling of Facebook’s Libra cryptocurrency, US lawmakers and regulators have ramped up the action. Despite the industry experts opposing the regularization of crypto, authorities have continues their efforts.
In its statement, the IRS also reminded of the Virtual Currency Compliance campaign it launched last year, to educate people about crypto compliance and non-compliance. It also added that it will continue its operations against non-compliance of tax laws in the industry, by educating people, or if required, starting criminal investigations.