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 … Drastic Change in Crypto Tax Reporting Due by January 1, 2025

Is Your Business Eligible for the ERC Voluntary Disclosure Program? If your business claimed the Employee Retention Credit (ERC) during the COVID-19 pandemic, recent IRS actions may affect you.  The IRS has introduced a voluntary disclosure program that allows businesses to correct erroneous ERC claims without facing severe penalties. If your business is uncertain about … IRS Announces Employee Retention Credit (ERC) Voluntary Disclosure Program

You Have a Right To Appeal in U.S. Tax Court The IRS has recently resumed the issuance of LT 11 notices, which is a notice of intent to levy because of unpaid taxes, after a pause during the COVID pandemic.  An LT 11 notice is the IRS signaling to the taxpayer that it intends to … IRS Resumes Issuing Intent To Levy Notices: What Taxpayers Need to Know

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?

Expert Advice from Kugelman Law Tax season can often be a daunting time for many individuals and businesses. The complexities of tax laws combined with the pressure of meeting deadlines can lead to heightened stress levels. However, with proper preparation and guidance, navigating tax season can be a breeze. As experts in tax and crypto … Tax Planning Tips for a Stress-Free Tax Season

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