Is it possible to settle IRS CP2000 payment with Bitcoin or other cryptocurrencies?

3 answers

• May 02, 2022 · 3 years ago
  Yes, it is possible to settle your IRS CP2000 payment with Bitcoin or other cryptocurrencies. The IRS has not explicitly prohibited the use of cryptocurrencies for tax payments. However, it is important to note that the IRS treats cryptocurrencies as property, not currency. This means that when you use cryptocurrencies to pay your taxes, you need to calculate the fair market value of the cryptocurrency at the time of payment and report it on your tax return. Additionally, you should consult with a tax professional to ensure compliance with all tax regulations.
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• May 02, 2022 · 3 years ago
  Absolutely! You can settle your IRS CP2000 payment with Bitcoin or other cryptocurrencies. Just make sure to accurately report the fair market value of the cryptocurrency on your tax return. Keep in mind that the IRS may require additional documentation or proof of the transaction, so it's important to keep detailed records. If you're unsure about the process, it's always a good idea to consult with a tax professional who is knowledgeable about cryptocurrencies.
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• May 02, 2022 · 3 years ago
  While it is technically possible to settle your IRS CP2000 payment with Bitcoin or other cryptocurrencies, it is important to note that the IRS has not provided clear guidelines on how to do so. As a result, it may be more practical to convert your cryptocurrencies into fiat currency and then use that to pay your tax bill. This ensures that you are accurately reporting the fair market value of the cryptocurrency and complying with all tax regulations. However, it's always a good idea to consult with a tax professional for personalized advice based on your specific situation.
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