Digital Tax Planning Services
Digital-currency transactions can create complex tax reporting obligations. This article explains how gains and losses from cryptocurrency activity may affect an income-tax return.
Have Questions About Digital Tax Planning Services?
Discuss Your Tax Issue With an Experienced Attorney and CPA
We specialize in tax planning related to digital currencies. This includes calculating the gains and losses resulting from the sale or exchange of digital currency for your income tax return. Under IRS Notice 2014-21, digital currency dispositions will be treated as a sale of property, as opposed to an exchange of a currency.
Therefore, as an example, if you use bitcoin to purchase an item, a tax calculation has to be made to determine the tax gain or loss related to the disposition of the currency for that purchase.
We Can Help You No Matter Where You Live.
Our New York tax law firm offices are located in New York State, but we are able to help you in any state across the country. We can work with you no matter where you live. Mr. Hart is licensed to deal with the IRS in every state in the entire country.
Frequently Asked Questions About Digital Tax Planning Services
Answers to common questions about Digital Tax Planning Services, relevant tax procedures, and when professional guidance may help.
Digital-currency transactions can create complex tax reporting obligations. This article explains how gains and losses from cryptocurrency activity may affect an income-tax return. The rules and available options depend on the taxpayer’s particular facts.
The issue may affect filing obligations, tax balances, deadlines, penalties, collection activity, or appeal rights depending on the circumstances.
Keep the relevant tax returns, notices, account transcripts, correspondence, payment records, and supporting financial documents. The exact records needed depend on the issue.
Seek advice promptly after receiving a notice, learning of a filing problem, or facing an audit, appeal, or collection deadline. Early review provides more time to evaluate the response.
Timothy S. Hart is both a tax attorney and a CPA. He can review the facts, explain the applicable process, identify practical options, and communicate with tax authorities when representation is appropriate.
The IRS and State Tax Departments are not your friend, and are looking after their best interest
Stop fighting alone. Call now for your free consultation with Tim Hart.
