TL;DR: United States tax collection agency, the Internal Revenue Service (IRS), has begun a campaign of sending out letters to those it suspects of having interacted with cryptocurrency at some point, possibly triggering “taxable events.” Noted Bitcoin ambassador Andreas Antonopolous announced recently he too received an IRS tax letter.

Andreas Antonopoulos Gets IRS Tax Letter

Author, lecturer, ambassador for cryptocurrency, Antonopoulos can be counted among the most public figures within the ecosystem. He speaks around the world, has a steady Twitter following, hosts a podcast, and his YouTube talks are considered mandatory viewing by many in the space. Shows such as The Joe Rogan Experience, London Real, countless mainstream news programs, have all featured Antonopoulos, 47, who is arguably the most cited Bitcoin personality for about the last half a decade running. It’s hardly a secret, in other words, the man has dabbled in cryptocurrency.

“The IRS is using very advanced investigation techniques,” Antonopoulos teasingly snarked at having received an IRS tax letter aimed at enthusiasts. “They have information that leads them to believe I may have crypto-currency. Say it ain’t so! Such sleuthing. WOW. PS. I reported and paid all my taxes properly. They’re casting a very wide net blindly. Cheap and easy.”

Recent History’s Embarrassments

Indeed, the US tax agency appears to be attempting avoidance of recent history’s embarrassments. Only a few years ago when crypto prices hit all-time-highs across markets, it turned out but a handful of tax forms included digital assets among their filings. Something like less than a thousand people even bothered to list involvement with crypto, sending the IRS to court against such popular exchanges as Coinbase in an effort to better track down owed payments.

This year, the bureau has set up a “guidance” page, insisting “sale or other exchange of virtual currencies, or the use of virtual currencies to pay for goods or services, or holding virtual currencies as an investment, generally has tax consequences that could result in tax liability,” and evidently also sending at least two rounds of letters to those suspected of mixing with crypto.

It’s unclear from where the IRS tax letter draws its current “information,” but chances are centralized, regulated exchanges are prime honeypots. This also isn’t the first time Antonopolous has encountered an IRS communication. Back in 2018, he confirmed being part of the court-ordered 13,000 Coinbase accounts to be forcibly turned over. “Not surprised, I knew I would be in that group. In case you were wondering, I’ve filed & paid taxes for my bitcoin income, gains/losses,” he tweeted, going on to insist his accountant spent 150 hours meticulously gathering all taxable event information required.

Asked this time why the IRS just didn’t check their records prior to sending out warning letters, Antonopolous answered, “Why bother? It’s not like sending mail costs them much. [They] externalize all the cost as fear.”

DISCLOSURE: The author holds cryptocurrency as part of his financial portfolio, including BCH.

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