Quick Take

• There has been a huge spike in IRS warning letters sent to crypto investors over the past few weeks, according to CoinLedger CEO David Kemmerer.
• It could be the start of a broader enforcement wave with new 1099-DA regulations coming into force next year, he said.

Over the past 60 days, crypto tax software platform CoinLedger has witnessed a 758% increase in U.S. users receiving Internal Revenue Service letters, with accounting firms like Taxing Cryptocurrency confirming the same trend, CoinLedger CEO David Kemmerer told The Block.

Although President Donald Trump has expressed interest in eliminating taxes on U.S.-based cryptocurrencies, no related legislation has been introduced in Congress, he said via email. Meanwhile, many investors still mistakenly believe they don't need to report crypto on their taxes, and IRS letters like this one are causing a lot of anxiety, he added. It could be the start of a broader enforcement wave, especially with new 1099-DA regulations set to kick in next year, Kemmerer said.

...read more at theblock.co