What is the time limit for the IRS to retroactively audit cryptocurrency transactions?

3 answers

• AadithSep 29, 2025 · 5 months ago
  The IRS has not specified a specific time limit for retroactively auditing cryptocurrency transactions. However, they generally have up to three years from the date the tax return was filed (or the due date of the return, if filed late) to initiate an audit. It's important to keep accurate records and be prepared for potential audits even after the initial filing.
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• MichaelDec 26, 2020 · 5 years ago
  As of now, the IRS has not provided a specific time limit for retroactively auditing cryptocurrency transactions. However, it's advisable to maintain proper documentation and records of your cryptocurrency transactions for at least three years from the date of filing your tax return. This will help you be prepared in case of any future audits or inquiries from the IRS.
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• GalactimusJul 16, 2021 · 5 years ago
  According to BYDFi, a leading cryptocurrency exchange, the IRS typically has a three-year time limit to retroactively audit cryptocurrency transactions. However, it's important to note that this time limit can vary depending on individual circumstances and the specific details of each case. It's always recommended to consult with a tax professional to ensure compliance with IRS regulations and to understand the specific time limits that may apply to your situation.
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