The IRS has again been sending CP2000 letters to virtual currency investors as part of the agency’s ongoing efforts to collect revenue from cryptocurrency taxes.
The CP2000 letter is not just for cryptocurrency traders; anyone with a discrepancy on their federal tax returns could receive the notice. But, if you received a CP2000 notice about cryptocurrency, it’s because the IRS has information about your trading activity, and this information doesn’t match what you’ve reported on your tax return.
What do I do if I received a CP2000 crypto letter?
If you received a letter, think the amount is correct, and you want to pay the debt and be done with it, then fill out the form and remit it with a check. You’re done.
However, the IRS may not be correct. For cryptocurrency investors, in particular, CP2000 letters can be notoriously inaccurate. If you received a letter, you have 30 days to reply - so do not procrastinate. The worst thing you can do is ignore the notice; the IRS can, and eventually will take extreme collection measures like filing a lien on your property or even levying your bank account.
I don’t agree with the amount on my CP2000 crypto letter. What should I do?
If you disagree with the amount, be sure to hang onto the letter and contact a cryptocurrency tax lawyer right away. The good news is we've partnered with Gordon Law Group, experts in cryptocurrency taxation and legal structures, on our fully prepared tax plan option. Gordon Law Group will get right to work responding to the IRS and creating all supporting documentation by the deadline stated on your notice. Check out Andrew Gordon, President of Gordon Law Group, sharing a success story on fighting a $400,000 crypto tax bill in this short video.
Our partnership with Gordon Law Group means that they will not only handle the CP2000 letters but will also complete all of your tax forms including 1040 and all schedules. Please get in touch with us at email@example.com with any questions about CP2000 letters or our fully prepared plan. We are here to help you save money on your Crypto Taxes and Accounting!