In July 2018, the IRS announced that they will be focusing their efforts on a new Virtual Currency Compliance Campaign. This effort stems from the 132 MILLION tax returns filed in 2016, with only 802 of those individuals reporting any cryptocurrency transactions on their returns. (Bitcoin alone reports up to 250,000 transactions per day.) With the crackdown, the IRS is also considering fraud enforcement. Tax fraud is always a felony and occurs if greater than 25% of gross income is under-reported on a tax return.
In the crypto world, a taxable event “occurs when a coin is traded for cash (also known as fiat), or another cryptocurrency, or when a cryptocurrency is used to purchase goods or services.” In other words, your virtual currency is creating taxable capital gains and losses with each transaction.
At AAG, we are here to help. With our Advanced Crypto Tax Certified Expert, and our Reconciliation team, we are ready to get you into compliance. Our consultation is free, and our prices are competitive. Call today for a consultation.
Start with a complimentary tax consultation to find out where you are and where you want to be. Call (858) 384-2074 or send a message to get things started.