Tax Notes reports on a panel moderated by Lawrence (Larry) Sannicandro. As recounted in the article, an agency official noted that the IRS is getting more information concerning taxpayers who transact in virtual currency by issuing John Doe summonses to certain cryptocurrency exchanges. The same official also noted that, in response to the soft letters, the IRS received 85,000 responses in which taxpayers attempt to voluntary come back into compliance. Sannicandro noted that John Doe summonses and soft letters would continue to be used an enforcement tool given the sevenfold response rate to soft letters (85,000) as compared to information about users at one cryptocurrency exchange (14,000).
12.14.2021