This is worrying for many of us in the cryptocurrency market. But the IRS doesn't give a damn.. Their job is to catch the tax evaders. And no one can do anything about it. The advantage here is each of those listed has a chance to workout their records and speak to a legal advisor for advice.
Many on the 13,000 shortlist ripped big at the closure of the year 2017.. Some of these have never held any asset outside of crypto, some have investments which have never brought the returns they have got from the investments in cryptocurrency. This shows how many of these are inexperienced investors.. having no idea about the tax code and don't have a single idea about keeping records.
Being tax illiterate would be an excuse.. but this is IRS... They're going to look at everything you've ever done on blockchain, and if your guilty they'll pin you and throw you in jail. This decision can't be turned back.. Let's patiently wait as events unfold and pray the 13,000 are clean. We've seen a lot of dips in just the first two months of this year and we wouldn't want things to get worse than they already have. For those that are not on the list, it's time to review how we report our trading income and learn more about the tax code