IRS Solicits Contractors to Help Examine Crypto Traders’ Tax Returns

The Internal Revenue Service (IRS) is seeking third-party contractors to help it assess whether certain U.S. taxpayers have properly paid taxes on their crypto holdings.

According to an email posted online by CryptoTrader.Tax and verified by CoinDesk, IRS Assistant Deputy Commissioner John Cardone said the agency is looking for contractors to “assist our Revenue Agents in calculating taxpayers’ gains or losses as a result of their transactions involving virtual currency.” At least one other company in the space, which asked not to be named, also received the email.

"The IRS can confirm the authenticity of the email," the agency told CoinDesk.

The call for contractors comes as the IRS is paying increasing attention to the crypto space, having issued its first guidance on the matter in years last October and adding a question about digital currency ownership to this year’s return form. Privacy-conscious crypto users are likely to chafe at the idea that the IRS may be hiring outside parties to review their transactions.