The Internal Revenue Service (IRS) would soon be appointing third-party contractors who will help it to examine if the US taxpayers properly paid their crypto holding taxes or not.

Recently, CryptoTrader.Tax, a platform that facilitates crypto tax calculation, <a href="https://cryptotrader.tax/blog/irs-hires-tax-professionals-to-audit-crypto-tax-returns" target="_blank" rel="noopener">posted</a> an email confirming that Assistant Deputy Commissioner at IRS, John Cardone, has stated that they have been searching for a contractor, who could help the agency’s Revenue Agents in calculating the profit and loss of taxpayers.
<h2>Crypto Tax Guidance Issued By IRS In 2019</h2>
In October 2019, the IRS issued its first guidance on crypto holding tax and in the recent year, the agency published a return form which included a question regarding digital currency ownership. As all of this is happening, it increased the agency’s interest in crypto space and then it decided to hire contractors to help its agent.

Although, its a great initiative by the IRS, the crypto-users, who are conscious regarding their privacy, might get annoyed with this news because they would not want any outsider to review their transaction.

Regarding this, the CEO of CryptoTrader.Tax, David Kemmerer, said, “I don't think people will be pleased about this. However, those who have been accurately reporting their crypto taxes will have nothing to worry about”.
<h2>CryptoTrader.Tax Rejects IRS Invitation</h2>
Kemmerer also confirmed that his firm, CryptoTrader.Tax, would not even try to be part of this contract because they are totally dedicated to their users. He asserted that in the future also they would not be working for the government in this regard.

In March 2020, an IRS crypto summit was organized by the agency where Cardone, while welcoming the audience, said that the tax collectors had been searching for some specific issue of interest to the industry.

Cardone who is with Large Business and International division (LB&amp;I) of agency, in his mail specified that initially, the agency would go through single-case contracts and later it would invite proposal for multi-case contracts.

It email also has pointed out that any of the company that would be participating will have to sign a non-disclosure agreement with the agency. The companies would also have to give their consent to a tax compliance check.

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IRS Invites Contractors To Help In Auditing Crypto Tax Returns

The IRS would soon be appointing third-party contractors who will help it to examine if the US taxpayers properly paid their crypto holding taxes or not.

Jyoti is a graduate from GGSIPU and has done her PG Diploma in English Journalism from IIMC. Presently, she is working as a content writer with Agio Support Solution Pvt. Ltd. Her aim is to provide informative content about cryptocurrency and blockchain, to the tech-enthusiasts.

IRS Invites Contractors To Help In Auditing Crypto Tax Returns

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