IRS Implements Tax Compliance Education The IRS utilizes a number of strategies to ensure that…
If you are one of the nearly 25% of Americans who own cryptocurrency, you might be wondering how to manage your tax returns in order to remain legally compliant. Because tax compliance, tax planning, and estate planning for cryptocurrency owners can be complicated, consulting with a Gilbert tax attorney is highly recommended.
The IRS continues to expand its cryptocurrency oversight and regulations, so it’s essential to work with a qualified tax professional who understands IRS guidelines. Some of the primary guidelines regarding cryptocurrency and taxation compliance are listed here.
Avoid IRS scrutiny, audits, and penalties for noncompliance by verifying whether you qualify to pay taxes on your cryptocurrency transactions.
If you participated in any of these cryptocurrency transactions, you might need to increase your estimated tax payments. In most cases, you will need to file Form 8938 (Statement of Specified Foreign Financial Assets) and/or an FBAR (Report of Foreign Bank and Financial Accounts). Additionally, if more than $10,000 worth of cryptocurrency was used in a transaction, the owner may be subject to cash-receipts information-return reporting because virtual currencies and cryptocurrency will be included in the term “cash” after 2022.
Some types of cryptocurrency transactions are not taxable:
Tax planning will vary depending upon your role in cryptocurrency, but your Chandler tax lawyer can help you navigate the regulations. Your attorney’s role in assuring your tax compliance may include:
Whether you are a miner, investor, trader, or a dealer, it’s crucial to receive advice from a qualified source and be aware of the regulations that you will be subject to follow in order to avoid penalties for non-compliance.
Cryptocurrency owners must give specific consideration regarding their estate planning.
Ensuring tax compliance and planning your estate can be complicated when you own cryptocurrency, but the attorneys at Silver Law, PLC are ready to provide trustworthy legal advice. Our attorneys have extensive experience in all forms of tax law, hold a comprehensive understanding of federal and state tax regulations, and are up to date on the latest developments regarding IRS taxation of virtual currency. Contact our office today to schedule your free, confidential consultation and learn more about how we can assist you.
Email: lchapman@silverlawplc.com
Website: taxcontroversy.com
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