In response to the US Internal Revenue Service (IRS), a letter was sent to more than 10,000 cryptocurrency investors to inform them that they may be taxed on digital assets. Sean Ryan, co-founder of cryptocurrency tax company Node40, said in an interview that the US Internal Revenue Service has not answered several unanswered questions about the nuances of encryption taxation. If you read the IRS letter, you will find that all three letters contain a statement that clearly states that the exchange of one currency for another is taxable. This may be the first time the IRS has publicly issued such guidance. The fact is that it has had a major impact on traders who believe that any proceeds can be deferred under the property transfer rules.