If you are a HODL-er who has never taken a profit, this warning does not apply.
Otherwise, please pay attention: IRS Sending Warning Letters to More Than 10,000 Cryptocurrency Holders.
The Internal Revenue Service has begun sending letters to more than 10,000 cryptocurrency holders, warning about the penalties for failing to report income and pay tax on transactions involving virtual currencies.
The agency expects its mailing to be completed by the end of August. It is sending three variations of one letter, depending on the information it has about the recipient. "Taxpayers should take these letters very seriously. The IRS is expanding efforts involving virtual currency, including increased use of data analytics," said IRS Commissioner Chuck Rettig.
In recent weeks, IRS criminal investigations chief Don Fort has announced that the agency is also building criminal tax-evasion cases involving cryptocurrency that are expected to be made public soon.