In March 2020, the Australian Tax Administration (ATO), the agency responsible for tax administration in Australia, was in the process of launching the largest cryptocurrency tax war, similar to the Revenue Administration in the USA (IRS). ATO was planning to send alert notices about 350,000 Australians about cryptocurrency taxes.
These notifications aim to provide taxpayers with training in tax reporting on the cryptocurrency. Those who receive the notifications will have to pay applicable taxes. These letters are similar to IRS 6174 and 6174-A notices received by approximately 10,000 US taxpayers.
Interestingly, ATO notifications seem to target a large number of cryptocurrency users, regardless of the size of their crypto assets. In general, tax officials such as the IRS tend to focus on high cases to justify the cost of administration.