IRS Warning on New Cryptocurrency Fraud Scam

The IRS is warning taxpayers about a new scam impacting cryptocurrency investors. Pursuant to the scam, bad actors send what appears to be a letter from the IRS directly to investors claiming that they must enroll in a fake "Digital Asset Compliance Portal" that resembles irs.gov. The notices contain a QR code that directs investors to a fraudulent website that requests personal information, cryptocurrency wallet information, exchange account credentials, or other sensitive personal and financial data. The IRS reminds taxpayers that it does not maintain a Digital Asset Compliance Portal. The IRS recommends that taxpayers not scan QR codes directly and instead should go directly to the IRS website and contact the agency directly via the website. Taxpayers who have already provided information should stop communication with the fraudster, change any impacted passwords, contact the exchange or institution immediately and report the information to IRS-CI at www.IRS.gov/SubmitATip. For more information on the tax treatment of digital assets, visit Tax Facts Online. Read More: Link to Q7727. Note: Q is updated.