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

The Crypto Laws You Need to Know for Tax Season

By Alexander Kugelman | February 28, 2019

It’s Important to Know How Crypto Investments Should be Handled in the Eyes of the Legal System

Cryptocurrency accounting presents a unique challenge for U.S. taxpayers who must deal with incomplete records, unique documentation standards, and limited IRS direction.

Crytpocurrency tax attorney Alexander Kugelman joined the Crypto Craze TV show to explain why compliance with crypto tax laws is so difficult and what can be done to address the issues.

“The first issue is the accounting itself. Anyone involved in crypto trading knows it’s very easy to be on multiple exchanges as well as engage in hundreds of thousands of trades. Unwinding that into proper accounting to determine gains or losses is really difficult,” Kugelman said. “The second issue that I see is there is really limited guidance from the IRS and U.S. Treasury on correct reporting. Some basic concepts are settled but for the most part, a lot of these issues are still open questions.”

Delaying or avoiding filing crypto taxes is shortsighted and not a good long-term strategy, according to Kugelman.

“If the taxpayer doesn’t report them, the typical statutes of limitations for audits and other type of enforcements do not start running so they are just left open,” he said. “At the same time, the records that relate to these aren’t going anywhere so it’s just a matter of time before that information is shared with different reporting agencies.”

If you need guidance with your cryptocurrency accounting and tax requirements, please contact Kugelman Law today.

Watch the full interview with Alexander Kugelman on the intersection of cryptocurrency and tax law.

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.