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/Ucscprickler May 22 '25

Try running your transactions through a crypto service like Koinly. It should be able to track the transactions of your wallets and determine if you owe any taxes on capital gains. Just make sure all the transactions matchup up because sometimes they get doubled up for some reason.

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u/Firm_Ad_6712 May 24 '25

Yup, in 2023 I ended up paying the IRS nearly double what I owed due to a glitch, somehow most of my crypto trades got doubled up... I knew something was off but it was 10,000+ bot swaps and too confusing at the time. Not even my CPA could figure out the mess. Koinly caused the errors so I just paid what it said I owed and never got the money back from the IRS, who didn't know any different based on the incorrect information. 😔

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u/OkCryptographer4663 Jun 10 '25

Now that you have figured it out, amend your return and get your money back.