Cryptocurrency Tax Preparation
Should you report cryptocurrency income on your annual tax returns? IRS rules on cryptocurrencies have been in a constant state of flux as blockchain technology evolves. While crypto tax laws were vague in the past, its clear that this income must now be reported on your tax returns whether you're a big time business investor or an individual that dabbles in digital assets as a hobby. W. E. Stevens, P.C. specializes in crypto tax preparation services and will advise you on how to stay in compliance.
Filing Crypto Tax Returns
This is not the time to punch a few numbers into an online tax software and call it a day. The tax reporting requirements for digital currencies are much more involved than a regular business or personal return. To file correctly and be prepared in case of an audit, you need more than a tax return. You must gather all of the documentation associated with your transactions in case the IRS ever demands proof of where you got your numbers.
The federal government recognizes the potential for revenue from cryptocurrencies and they plan to get their share one way or another. If you don’t report your virtual transactions properly, the IRS may go after you for penalties and interest. Failing to report your gains and losses at all is considered tax fraud and in some cases you may even face criminal prosecution.
Tax time will be here again before you know it. Request a free consultation online or call us now at (402) 932-8815 to get started.
- Crypto tax returns for businesses and entrepreneurs
- Multi-state returns
- Schedule C, Schedule D, and Form 8949 filings
- Amending past tax returns
- Filing back tax returns
- Preparing FBAR filings - FinCEN Form 114
