Tax Expert: IRS Letters Confirm That Trading Cryptos Is a Taxable Event

The U.S. Internal Revenue Service (IRS) announced on July 26 that 10,000 American cryptocurrency users will receive a letter reminding them to pay taxes or amend any mistakes on past filings. At the time, IRS Commissioner Charles Rettig said U.S. taxpayers should take the warning letters “very seriously.” Sean Ryan, CTO of Node40, a platform that helps people calculate digital currency-based taxes, believes all three letters make it clear that exchanging one cryptocurrency for another is a taxable event.

Also Read: 10,000 American Cryptocurrency Owners Will Receive Warning Letters From the IRS

IRS Believes the Tax Agency Is Ahead of the Curve When It Comes to Cryptocurrencies

When the IRS announced that it was sending 10,000 letters to American taxpayers who own or have once owned cryptocurrencies, the digital currency community seemed shocked. That said, many crypto proponents, lawyers, and tax accountants expected the action after the IRS told the public…