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/Doctor_Fabian May 27 '25

What you have to do is not sell your crypto then renounce and then cash out. You can't cash out and then renounce. Also renouncing is not that easy. You will probably never be able to enter USA again.