H&R Block, a global consumer tax services provider, warns taxpayers that the increased volume of letters and notices sent by the Internal Revenue Service (IRS) indicates the possibility of cryptocurrency holders interacting with the tax agency would become much more difficult compared to what it used to be. And the company offers solutions to this growing predicament.
The IRS has started sending letters to 10,000 taxpayers associated with cryptocurrencies and potentially failed to pay the necessary taxes or unreported or misreported taxes on their cryptocurrency holdings, as well as to taxpayers with estimated tax obligations.
The agency began sending these letters sometimes in July and expected its mailing to be completed by the end of August. These letters have made taxpayers worry regarding their tax filings as they could be subject to criminal prosecution.
The submission of these 10,000 letters to taxpayers was a part of millions of letters the IRS sends to taxpayers annually. For instance, the IRS sends 3 million under-reported income letters, 13.2 million letters to fraudulent accounts and about 720,000 IRS letter audits.
Andy Phillips, director at The Tax Institute at H&R Block, Inc. commenting on the letters said:
“Some of these notices are really just a courtesy, meant to help taxpayers understand their obligations and stay ahead of the curve. But that doesn’t relieve the taxpayer of the stress and anxiety that receiving an IRS letter can cause. It’s nerve-racking. Plus, some letters do require a response or some action from the taxpayer.”
He further said added that his firm not only provides solutions to the wide range of tax problems, including taxes on crypto earnings, but also understands how troublesome it could be to prepare an accurate tax filing.
Free Diagnostic Analysis to Crypto Holders
According to Phillips, the firm can help taxpayers with appropriate solutions. H&R Block’s IRS specialist can help cryptocurrency holders to navigate through various solutions, for instance filing any missing returns, reducing or eliminating any tax, penalties, and interest owed and preventing from additional tax assessments.
To get the tax solutions, the clients will have to go through a free diagnostic analysis where a tax professional will not only identify the tax issue but also provide appropriate roadmap to solve it. A tax professional from H&R Block will later work with the IRS or a state department of revenue, as needed, to resolve the client’s issue. The client will be charged as per the complexity of the tax issue and no hidden charges will be levied.
“H&R Block cuts through the confusion of receiving an IRS letter, with a free evaluation, and plan to fix it. We’ll put the plan into action until your problem is solved,” said Phillips.
