r/CryptoTax • u/AlfalfaTemporary6574 • May 21 '25
Letter from IRS
So I just got a letter from the IRS, but it's a bit vague. Basically saying they know I have a wallet, and might need file an amended return for one or more years. I want to deal with this in a timely manner but I'm not sure where to start. I haven't sold anything in 7 or 8 years, when how to deal with taxes was unclear. And haven't even traded or exchanged anything in I'd say 3 or 4 years. I didn't realize that exchanging was a taxable event at that time. I've never filed an amended return and the letter lists a ton of different forms I might need or use. Can i figure this out on my own with the info from my exchange? Should I try calling the irs hotline# on the letter? Would it be worth trying to find a crypto tax accountant or something?
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u/QuizWhizzies May 22 '25
From personal experience and 10k later for a crypto lawyer... You need to respond and fix your back taxes. They know exactly what you've cashed out and traded. This is a gentle pre-warning. I've known four people who have gotten audited when they ignored this letter. 🤦🏼♀️ We talked to Gordon Tax and he got us all squared away.