Cryptocurrency Tax Issues
Our team understands that the complex law surrounding cryptocurrency can be daunting. Brotman Law attorneys have studied the law to provide individuals like you with the support you need to pursue your goals. We’ve helped our clients through IRS audits, U.S. Tax Court proceedings, penalty abatements, and foreign account disclosures. Beyond compliance, we provide strategic insights to maximize savings and navigate regulatory changes confidently, safeguarding your assets.
SAVE YOU MONEY
We save you money in the current tax year and create savings that will undoubtedly send a ripple through the coming years. In the long run, thousands of dollars will grow to hundreds of thousands, then millions in savings.
GREATER WEALTH
We help you keep more money in your pockets for investing, saving, or anything else that contributes to a good life. Our attorneys strive to reduce your lifetime tax liability by implementing different legal tax optimization strategies.
PEACE OF MIND
We work with you to ensure every item is correctly captured on your tax returns allowing you to enjoy greater peace of mind.
Overview
Whether you’re a seasoned investor or new to the crypto market, our team works to provide you with personalized strategies that address your unique circumstances and financial goals. We understand that each client’s crypto portfolio is distinct, requiring tailored solutions to optimize tax savings.
Along with tax strategy, we have helped hundreds of clients through IRS examinations. Whether you’re facing questions about reporting requirements, capital gains, or the classification of transactions, our team has a deep understanding of the complexities surrounding cryptocurrency taxation and can utilize this knowledge to provide you with the defense you need. We navigate the evolving regulatory landscape with precision, ensuring compliance with federal and state obligations.
THE RIGHT THING
What Else Should I Know?
From minimizing capital gains through meticulous cost basis calculations to exploring deductions and credits tailored to cryptocurrency activities, we empower our clients to retain more of their earnings for reinvestment and sustained growth. Our strategic approach involves a detailed analysis of transaction histories and asset valuations to ensure accurate reporting and optimal tax efficiency.
By leveraging our knowledge in navigating the nuances of cryptocurrency taxation, we help mitigate tax liabilities while maximizing available incentives. Whether you’re aiming to offset gains with losses, utilize tax-deferred exchanges, or strategically time transactions to minimize tax exposure, we provide comprehensive guidance to protect and enhance your financial interests in the dynamic world of digital assets.
At Brotman Law, we assist clients in navigating the complexities of disclosing cryptocurrency holdings and transactions to regulatory authorities. If you’re proactively disclosing foreign cryptocurrency accounts or addressing past delinquencies, our experienced attorneys ensure compliance with IRS requirements and international tax laws.
Our tailored approach includes comprehensive reviews of your cryptocurrency activities to ensure accurate and timely disclosures, minimizing the risk of penalties and legal repercussions. With Brotman Law, you can rest assured that your cryptocurrency disclosures are handled with precision and expertise, safeguarding your financial interests effectively.
Disclosures related to cryptocurrency capital gains primarily involve accurately reporting transactions to the IRS. This includes detailing each sale, exchange, or disposition of cryptocurrency holdings throughout the tax year. Navigating these requirements can be complex, highlighting the importance of understanding compliance guidelines thoroughly.
We’ll help you in compiling and organizing transaction data, calculating accurate capital gains or losses, and preparing the necessary forms for submission to the IRS. Our goal is to help you navigate these obligations efficiently and compliantly, minimizing the risk of audits or penalties while optimizing your tax savings as much as we can.
WE KNOW OUR STUFF
Our background in IRS examinations provides us with a strategic advantage, as we understand the level of scrutiny and detailed documentation required when navigating cryptocurrency transactions.
IRS AUDITS
Our team’s experience in IRS audits, coupled with a deep understanding of cryptocurrency taxation, ensures we can effectively navigate complex audit procedures and advocate for your best interests with confidence and precision.
PERSONAL ATTENTION
Whether advising on voluntary disclosure programs or implementing strategies to mitigate audit risks, we provide customized support to safeguard your financial well-being and help you achieve your goals.
Our Clients Will Tell You: We Get Results.
Tax Strategies, Case Studies, and Thought Leadership
Cryptocurrency Currency Taxation
How Are Virtual Currency Audits Initiated?
A John Doe summons is an order that compels virtual currency exchanges to release user information. This is how the IRS may determine the identity of taxpayers who have failed to report their virtual currency earnings.
Read MoreCryptocurrency Currency Taxation
Foreign Cryptocurrency Accounts
Overseas virtual currency investors need to be aware of the Bank Secrecy Act and the Foreign Account Tax Compliance Act (FATCA). Each imposes its own rules and regulations in relation to reporting cryptocurrency held by Americans in foreign accounts.
Read More
Hundreds of $1,000,000s
Saved in Tax Penalties
100+
Appeal Victories
$1B+
Saved in Taxes
150+
Multimillion and billion-dollar corporate transactions
11+
Tax Services
400+
Clients represented in an audit
$160M+
in ERC Tax Credits
Our Thought Leadership Has Appeared In
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Book a Free 15-Minute Assessment Call
Set up a quick call with our firm’s concierge to see if we’ll be able to help you. The whole process will take 15 minutes or less.
STILL HAVE QUESTIONS?
Cryptocurrency held in foreign accounts must also be reported to the IRS, like other foreign financial accounts. Failure to report foreign cryptocurrency holdings can result in significant penalties.
Yes, losses from cryptocurrency transactions can generally be deducted against gains from other investments, reducing your overall tax liability. However, there are specific rules regarding the timing and amount of losses that can be deducted.
Holding cryptocurrency as an investment is treated similarly to holding stocks or other capital assets. Any gains or losses realized upon selling or exchanging cryptocurrency are subject to capital gains tax.