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Crypto Tax Question — IRS audit letter for crypto

Started by ConsumerAdvocate · Jul 31, 2025 · 506 views · 5 replies
For informational purposes only. This is not legal advice. Laws vary by jurisdiction. Consult a qualified attorney for advice specific to your situation.
CA
ConsumerAdvocate OP

I'm dealing with a situation and need some guidance.

IRS audit letter for crypto. I've been dealing with this for about 2 months now and the situation isn't improving.

I have already done some research online but got conflicting advice.

What are the risks if I pursue this? What's the likely timeline?

DH
desperate_homeowner_OH

Following this thread — I'm in a very similar situation. Would love to hear how it turns out.

CA
ConsumerAdvocate

Not a lawyer, but I have direct experience with this.

In my case, it took about 4-8 months to resolve. The key was filing with the appropriate government agency.

NF
newbie_freelancer_CO

This happened to me too. Have you tried filing a complaint with the relevant agency? In my case they investigated and it got resolved without needing a lawyer.

TL
Mod_TermsLaw Moderator

Attorney here. Here's my take on the legal issues.

This is a common situation and the law is fairly clear. Under the relevant statute, actionable.

The practical consideration here is cost vs. potential recovery. For disputes under $10K, small claims court is often the best route.

NB
newbie_buyer_WA

I work in this industry and unfortunately this is very common. The good news is that when people actually push back with legal representation, companies usually settle.