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1099 Tax Issue — IRS audit letter for crypto

Started by CorpCounsel_Amy · Jul 20, 2022 · 2,658 views · 4 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
CorpCounsel_Amy OP

Looking for advice on a legal issue. Here's what happened.

IRS audit letter for crypto. I've been dealing with this for about 4 months now and the situation isn't improving.

I have already consulted briefly with a lawyer but got conflicting advice.

Am I overthinking this or is this a real legal issue worth pursuing?

TL
Mod_TermsLaw Moderator

Licensed attorney — a few thoughts. Here's my take on the legal issues.

Based on what you've described, you likely have a viable claim under the relevant statute. The standard is whether a reasonable person would find the conduct actionable.

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

HM
help_me_driver_CA

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

OD
OpenSourceLawyer_Dan

I've seen this play out several times in my field.

The biggest mistake people make in this situation is having everything documented. I'd recommend keeping a detailed timeline instead.

CT
CryptoTrader_2023

I've dealt with this before.

In my case, it took about 2-4 months to resolve. The key was hiring an attorney to send the initial letter.

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