If you haven’t reported your cryptocurrency on your prior year’s tax filings, time is very much of the essence.
The IRS is about to obtain many reports & documents from cryptocurrency reporting services like Coinbase. The IRS knows that there is an underreporting of tax issue surrounding cryptocurrencies, as only 900 people per year reported cryptocurrency transactions from 2013-2015.
The Offshore Voluntary Disclosure Program (OVPD), will expire in September of 2018. After the expiration it is likely that the FinCen, the financial crimes division of the Treasury Department will become involved in cryptocurrency transaction matters. Examination and prosecution from FinCen, in other matters they have investigated, have resulted in criminal prosecution. The opportunity between now and September is to self-report past cryptocurrency transactions to avoid this ugly scenario.
What you need to do:
Call us. We help you understand what your tax & penalty exposure may be:
We will determine:
- Do you have a domestic capital gains & losses reporting requirement?
- Do you have an international component to your filing requirement, including a disclosure of foreign cryptocurrency holdings?
- Are you eligible for the streamlined reporting procedures with the IRS?
- Does the OVDP apply to your specific situation and how can we move fast to self-report your transactions.
We will accomplish:
- Filing all required tax returns and disclosures.
- Use our expertise in cryptocurrency taxation to reduce your capital gains and the total tax associated with these transactions.
- Correspond with the tax reporting agencies to keep this process moving.