US owners of digital assets may find themselves in trouble with the tax collector. The US Internal Revenue Service (IRS) is sending out letters detailing what taxes may be owed on cryptocurrency transactions. Until recently, taxing cryptocurrency owners was a grey area with little visible action.
The IRS is sending out different types of letters, from a reminder to review holdings to an outright requirement to file taxes or face an audit. The documents are known as Letter 6173, Letter 6174 and Letter 6174-A.