Justia Lawyer Rating
Federal Bar Association
Google Reviews
Expertise - Best Tax Attorneys in San Francisco 2022
Super Lawyers Rising Stars
Top 3 Tax Attorney In San Francisco

Expert Opinions on IRS Cryptocurrency Taxation Law

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 scrutiny of cryptocurrency taxation.

IRS educational cryptocurrency letters 6173, 6174, 6174-A were recently sent to taxpayers the IRS thinks hold crypto directing them to reporting guidance. This is the second round of IRS crypto letters following the first round of letters in 2019, which for the most part was associated with the Coinbase summons. This more recent round seems to be focused on letters 6174 and 6174-A and appear to extend outside of just Coinbase users and targets crypto holders on other exchanges.  

“I don’t see any reason why the IRS would not continue bolstering its efforts to tax and enforce crypto, especially as it is becoming more and more mainstream,” Alex said.

The group also discussed potential challenges to the IRS in terms of its collection efforts of crypto taxation under its interpretation of the U.S. Tax Code because there is minimal guidance from the IRS leading to wide open issues ripe for challenges, including bringing refund claims.

“The IRS fears adverse case law with respect to cryptocurrency,” Alex said. “And it is coming with people wanting to challenge these issues.”

Episode segments focus on the following topics:

·       The 2020 IRS Educational Letters
·       DeFi and IRS Compliance
·       Future of Cryptocurrency Taxation
·       A Crypto De Minimus Exemption
·       Draft Form 1040 Crypto Question
·       Taxing Crypto Staking
·       Challenging the IRS
·       Crypto Tax Predictions

We Can Help with Your Cryptocurrency Tax Compliance

Kugelman Law is a tax law firm experienced with cryptocurrency tax reporting. We have helped hundreds of taxpayers account and report cryptocurrency gains and losses.

Our crypto tax attorneys in California are experienced with recreating missing trading data and dealing with high volume and complex trading activity. Let our team of experienced attorney and tax professionals bring you into compliance, defend you in your audit, or represent you in a criminal investigation.

Client Reviews
Alexander helped me break down my tax situation and used his expertise to figure out the next actionable steps, make sure that all the bases were covered (that I wasn't aware even existed), and confirm that things were done correctly. If you are confused and stuck in a difficult tax situation, Alexander will guide you forward and help you confidently resolve the issue. Henry Wang
If you are having tax trouble, Alexander is the one to help you. He was very professional, personable, and easy to reach. His explanation of the entire process is helpful for easing the stress that is associated with tax trouble. We never felt intimidated or out of the loop while working with him. The process was handled to our liking and we are satisfied with the results. Even the after care has been phenomenal! Tony W.
If anyone out there is in need of stellar legal tax assistance, look no further and contact Alexander Kugelman. He helped me tremendously with my tax situation and is always there to help when needed. If I can give Alexander more stars, I would because 5 stars is not enough! Thank you for everything, Alex!!! Flo Lauzon
Alexander has been a life saver! I got dragged into some serious IRS issues with a complicated foreign assignment component, which included divorce. Alexander has been working with me to resolve directly with the IRS. Alexander is detail oriented, responsive and I trust him to guide me. I will be using Alexander for all tax related matters from now on! He is stuck with me forever. Eve T.
Alexander helped me understand the IRS audit process and prepared my response. There were certain records that I had lost, but he suggested alternatives that the IRS accepted. Even better, he showed up at the audit for me and I never actually had to talk with the IRS. I didn't have to pay any penalties. I'd definitely recommend hiring Alexander to deal with an IRS issue. L.R.