Cryptocurrency Tax Issues
Virtual currency or "cryptocurrency" transactions (including buy-and-hold investments, mining, staking, and "crypto-to-crypto" trades) are subject to significant scrutiny by the IRS. Failing to report taxable transactions involving cryptocurrency can result in serious consequences, including assessment of additional tax, interest, penalties, and criminal prosecution. In fact, the first question on the federal individual income tax return (IRS form 1040) asks:
"At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?"
Our team is experienced with representing taxpayers facing serious tax issues involving cryptocurrency transactions. We invite you to call or request a consultation with a tax attorney to learn more about how we can help.