In the ever-changing world of cryptocurrency, it is hard enough to keep up with all the different crypto coins (such as Bitcoin), wallets, and crypto exchanges, much less trying to figure out what your tax reporting responsibilities are.
At Josh Cahan, CPA, I have a comprehensive crypto tax service to help you not only calculate your gains and losses, but also file other additional forms. For those of you that are new to the crypto arena, you may be asking yourself, “How can the IRS even find out where crypto is located?” Good question. The IRS has recently put cryptocurrency on its radar. In February 2018, a court ordered Coinbase to provide taxpayer ID’s, names, birth dates, addresses, and historical transactions of over 10,000 customers to the IRS. If you do not disclose certain information, you may be fined thousands of dollars.
My Cryptocurrency Tax preparation package includes the following:
The package takes care reconciling and reporting the gains and losses of all the crypto transactions for the entire year including airdrops.
FBAR filing (Report of Foreign Bank and Financial Accounts) may be required if you acquired Bitcoin or other altcoins on a foreign exchange. Failure to disclose crypto holdings can result in penalties assessed up to $10,000 or greater.
Similar to FBAR reporting, you may need to file 8938 if you have crypto coins held on a foreign exchange. Penalties can reach up to $60,000 for failing to disclose.
So whether you are investing, mining, or using altcoins for payment, make sure you are setting your best foot forward from the start by working with a local Charlotte, NC CPA Firm like Josh Cahan, CPA. Call 704-756-7394 or request a consultation online now.