Tax Reporting Theft Loss Options The latest crypto scam is being called “pig butchering” because it is a heavily scripted and contact intensive fraud meant to fatten the prey (or victim) before slaughter (or taking their money). Emanating from Southeast Asia, the crypto investment scam typically starts with the fraudster making contact with the victim … Pig Butchering Crypto Scam: Why is a cryptocurrency exchange requesting I deposit more tokens for taxes?

Kraken Summons Targets Taxpayers With $20,000 in Transactions A federal court has ordered Kraken exchange to provide account information to the IRS pursuant to a “John Doe” summons. The IRS sought information about U.S. taxpayers who conducted at least $20,000 in transactions on the exchange from 2016 through 2020. In October 2023, Kraken emailed customers … Court Authorizes Kraken Summons Seeking Identity of Crypto Users; Kraken Providing User Info to IRS

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, … What Causes a Crypto Audit and How to Respond to a Crypto 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 … Crypto Exchanges Now Required to Report Transactions to IRS

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 … IRS Criminal Division Shifts Focus To Crypto Tax Evasion Cases

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 … Tax Audits: What You Need to Know

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 … Binance AML KYC Verification and Tax Compliance Issues

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 … An Insider’s Perspective on IRS Crypto Tax Enforcement

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 … Cryptocurrency Taxes: CP2000 and What Crypto Traders Need to Know

Crypto and NFT Estate Plans Estate planning with cryptocurrency and NFTs presents unique challenges because the rules that determine how assets pass after death are geared toward more conventional assets.  In California, most estate plans are geared to avoid probate administration, which is a legal proceeding that winds up a person’s legal and financial affairs … Estate Planning with Crypto and NFTs

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 … Expert Opinions on IRS Cryptocurrency Taxation Law

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 Scams: What They Are and How To Avoid Them

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 … Uncle Sam Wants You to Pay Your Crypto Taxes

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 … IRS Launches Cryptocurrency Enforcement Campaign Likely Targeting Coinbase Account Holders

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 … IRS: Altcoin Trading is Taxable Event

Did you recently receive Letter 6174-A from the IRS? If you are a crypto holder who has received IRS Letter 6174-A, then this is what you should about it and the questions you should be asking. Is this the IRS acting on Coinbase summons information? It is a reasonable assumption, but the notice does not … IRS Letter 6174-A, Questions Every Recipient Should be Asking