Articles Posted in Crypto Taxes

Cryptocurrency fraud is rising at an alarming pace, leaving thousands of investors unsure of their next move. With the anonymity of blockchain transactions and the speed at which scammers operate, victims often feel helpless. This is where a crypto recovery lawyer plays a critical role. While no recovery process is guaranteed, working with an attorney…

Finding a CP14 Notice from the IRS in your mailbox can be unsettling. You may wonder whether the balance due is accurate, if the IRS made a mistake, or what consequences you’ll face if you don’t respond. This notice is the IRS’s formal communication informing you of an unpaid tax balance, and it’s critical to…

Key Takeaways for Digital Asset Holders New Guidance: IRS Revenue Procedure 2024-28 allows taxpayers to allocate basis in digital assets to wallets or accounts for tax purposes as of January 1, 2025. The allocation must be reasonable and can be either specific or global. This is crucial for accurate tax reporting. Transition Period: The guidance…

Learn About Crypto Tax Audits Crypto tax attorney Alex Kugelman provides a comprehensive breakdown of what causes a crypto audit and how to respond to a crypto audit on the latest Bitcoin Taxes podcast. Alex shares with host Sal Vescio a thorough overview of what causes a crypto audit, what to expect during an audit,…

IRS Crypto Tax Reporting Requirements As part of the Infrastructure Bill’s legislation, there is a requirement for crypto exchanges to report information to the IRS about its crypto and NFT transactions and investors. Now that the IRS will be tracking crypto investments, whether you are a trader, miner, developer, or a broker it is critical…

Investigations Focus on Taxpayers Paid in Crypto Who Do Not Report The IRS Criminal Investigation (CI) Division is preparing hundreds of cases and increasing enforcement related to crypto tax evasion and off-ramping transactions involving exchange of digital assets for fiat currency. Division Chief Jim Lee announced on a press call that there has been a…

Reporting User Info Could Trigger Criminal Investigations and Civil Audits Binance, the world’s largest cryptocurrency exchange, is now requiring users to verify their identity as enhanced security protection, but this requirement will have huge crypto tax compliance ramifications for its millions of users. By requiring Anti-Money Laundering (AML) and Know Your Customer (KYC) verification, including…

IRS Increases Focus on Crypto Tax Compliance In a wide-ranging BitcoinTaxes podcast, cryptocurrency tax controversy attorney Alex Kugelman delivers insights into the Circle/Kraken/Poloniex Summonses, the June 2021 Like-Kind Memo, and IRS enforcement of DeFi. Alex and his frequent collaborator on criminal tax issues, Chris Wadja, had a roundtable discussion with host Salvatore Vescio to breakdown…

IRS Increasing Enforcement of Crypto Tax Reporting The IRS has accelerated its priority of enforcing reporting of any cryptocurrency transactions because the agency treats crypto similar to stocks and taxable events. “When it comes to any IRS compliance issue – the thing the IRS cares the most about – is material failure to report,” San…

IRS Crypto Tax Challenges Cryptocurrency tax attorney Alex Kugelman joined the BitcoinTaxes podcast to share his expert crypto opinions on what the latest round of IRS activity means for crypto holders. Alex and Matt Metras, an Enrolled Agent with MDM Financial Services, had a roundtable discussion with host Salvatore Vescio to breakdown the increased IRS…