🚨I need to sound the alarm on something most crypto investors are NOT ready for…
I expect an avalanche of CP2000 notices this fall for crypto investors.
Many of these notices will be based on unreported income tied to Form 1099-DA, and a significant number of them will contain errors.
You should be prepared to challenge them.
When you receive a CP2000 notice, you typically have 60 days to respond. This is your opportunity to explain why the IRS’s calculation is incorrect.
The most important thing is to respond within that timeframe.
Do not assume the IRS numbers are correct. These notices are often based on incomplete or inaccurate data.
You are not “locked in” just because you received the letter. It’s a starting point, not a final decision.
If the numbers don’t match your records, push back.
Provide your documentation, explain the discrepancy, and correct the record.
In many cases, once you respond properly, you will not owe the amount the IRS initially claimed.
Please share this to help spread the word. Knowledge is power!