$1,420,838 CP2000 Assessment Reduced to $0

Tampa, Florida – Taxpayer received IRS Notice CP2000 proposing additional tax of $1,420,838, based on cryptocurrency trades reported to the IRS on Form 1099-K. Taxpayer challenged the proposed assessment but the IRS upheld it and issued a Statutory Notice of Deficiency. DeWitt Law represented Taxpayer and challenged the assessment in U.S. Tax Court, resulting in the assessment being reversed to $0.

$1,420,838 Income Tax Assessment Reversed to $0

United States Tax Court – Taxpayer was audited by the IRS after a third-party cryptocurrency exchange reported to the IRS gross proceeds the Taxpayer received from selling cryptocurrency. The IRS proposed additional tax of $1,095,708 plus penalties of $219,142 and interest of $105,988. DeWitt Law represented the Taxpayer and challenged the assessment in U.S. Tax Court. The Court reversed the assessment in full, resulting in $0 of additional tax owed.