IRS & California Tax Blog

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…

What Are The Steps in an IRS Tax Audit? Taxpayers facing a tax audit are confronted with the first step in a stressful journey through examination, appeals, and possibly litigation. Our team of IRS and U.S. Tax Court attorneys guides clients through the administrative process for an efficient resolution. The IRS starts an audit or…

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…

What To Do If You Are a Crypto Scam Victim The mainstream adoption of cryptocurrency means a corresponding increase in crypto scams and hacks. This article will explore what scams look like, warning signs that you may have fallen for a cryptocurrency scam, and what options are available if you are a victim of a…

Crypto Taxes and IRS Enforcement Cryptocurrency tax attorney Alexander Kugelman joined the Crypto Craze TV show to discuss how the IRS is cracking down on cryptocurrency investors and traders who may not be paying their crypto-related taxes. The IRS sent 10,000 letters to suspected cryptocurrency traders who did not meet their tax requirements related to…

IRS and the Coinbase Summons In 2018, Coinbase handed over information on more than 14,000 account holders to the IRS. Since that time, cryptocurrency traders have held their breath waiting for IRS enforcement. In June 2019, cryptocurrency traders are seeing the first step of that enforcement – IRS Letter 6174-A. This has all the hallmarks…

First Conclusive Indication Regarding Altcoin Trades Cryptocurrency traders often ask whether an altcoin trade, exchanging one cryptocurrency for another (e.g., bitcoin for ripple), is a taxable event. For practical and financial reasons, many cryptocurrency traders hoped that it was not. And many taxpayers that conceded altcoin trades were taxable, argued that like-kind exchange rules under…