Crypto investors are poised for record returns on Bitcoin and other digital assets—and so, too, is the taxman. The Internal Revenue Service has sent U.S. crypto investors a flood of warning letters about their digital asset investments over the past two months. The volume of letters—which warn taxpayers that crypto investments they declared on their recent tax returns may not be accurate—are an increase over the past year, according to three crypto tax experts.
CoinLedger, a crypto tax platform, has seen a spike in users asking about the government communiqués. The number of support conversations on CoinLedger that included the words “IRS letters” from May through June numbered close to 800, a ninefold increase compared to the same period in 2024, David Kemmerer, cofounder and CEO of the tax website, told Fortune.
