Here at Camuso CPA, ,we offer a wide array of tax and accounting services for cryptocurrency investors and traders including tax preparation, tax planning and portfolio reconciliations. Financial service companies are transitioning from employee driven revenue models to information driven revenue models. Camuso CPA strives to deliver useful insights and offer relevant explanations about the latest tax and financial topics.
In both the United States as well as numerous other countries any tax agency’s first steps towards cryptocurrency tax enforcement is data collection from all compliant exchanges which are relevant.
In the past the IRS has received information from Gemini and Coinbase which they will receive for this tax season too. Kraken, one of the most popular exchanges for Euro trading pairs informed that they will not alert the IRS about the cryptocurrencies that the users hold at the platform. According to the exchange, individuals transacting on the platform are responsible for their own reporting.
Last year and in future years individuals could receive a 1099-K. The 1099-K form is used to report payments received through card transactions and similar payment networks. The 1099-K lacks the cost basis details required to capture the capital gain/loss calculation that would ultimately determine taxable income and tax revenue for the IRS.
If people are transacting in digital currency, it’s important that they understand that there’s a tax obligation on their part. Whether they’re paying their taxes or whether they’re day traders– it doesn’t matter. Any time you’re transacting with digital currency, it’s important that people understand there is a tax liability.
Many people are going to be receiving 1099-K forms this year from the exchanges they’ve interacted with and we know that those forms are likely not going to be accurate. Our team will be able to deliver a more accurate calculation for tax reporting purposes and advise you on current tax regulations.
If you searching for CPA firms to assist you with reporting cryptocurrency income and capital gains, contact Camuso CPA. Whether you need tax preparation services, assistance with properly reporting gains and income from virtual currencies on your taxes, cryptocurrency portfolio analysis, or any other service provided by a certified accountant, Camuso CPA can help.