Cryptocurrency Tax Compliance in the Post-$50,000 Bitcoin World: Tax Filing Requirements, Managing IRS Examinations

Tax Treatment of Digital Currency, Exchange Transactions, Investments, Drop-Ins, Hard Forks, Soft Forks, and More

Recording of a 90-minute premium CLE/CPE video webinar with Q&A


Conducted on Thursday, April 22, 2021

Recorded event now available

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Course Materials

This CLE/CPE course will provide tax counsel, accountants, and other advisers with a critical first look at new IRS enforcement actions on taxpayer compliance and reporting obligations for cryptocurrency transactions. The panel will discuss the IRS position on the tax treatment of cryptocurrency, analyze IRS monitoring to increase compliance, consider criminal investigations and prosecutions for failing to report cryptocurrency transactions accurately, and define proper reporting and tax treatment for "mining" and exchanging cryptocurrency. The panel will also discuss tactics in managing IRS examinations and audits.

Description

The IRS continues to press its concern over "massive under-reporting" of income from cryptocurrency transactions. Tax advisers for clients with cryptocurrency holdings must understand the reporting requirements for exchange transactions and the IRS scrutiny cryptocurrency investors are likely to face in the future.

Cryptocurrency is a digital currency using encryption techniques--rather than a central bank--to generate, exchange, and transfer currency units. Uniquely, no bank or government authority verifies the transfer of funds. 

The value of Bitcoin has topped $50,000 in the past year, prompting a massive compliance initiative aimed at taxpayers holding and trading cryptocurrency. The IRS treats all virtual currency as property rather than currency for U.S. tax purposes. The IRS requires reporting any transaction involving cryptocurrency as a sale or exchange of property, with the taxpayer bearing responsibility for calculating and maintaining basis in their virtual currency holdings.

Listen as our expert panel discusses recent IRS enforcement actions focused on cryptocurrency and provides practical guidance on the U.S. tax reporting and payment duties arising from cryptocurrency transactions.

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Outline

  1. Recent IRS enforcement actions
  2. Valuation issues
  3. Tax reporting requirements for cryptocurrency exchanges
  4. Disclosure requirements for crypto-currency ownership
  5. Criminal investigations and prosecutions for failing to report cryptocurrency transactions properly

Benefits

The panel will review these and other key issues:

  • What recent actions have the IRS taken in regards to cryptocurrency tax compliance?
  • What are the income tax reporting requirements for cryptocurrency exchanges and valuations?
  • What are the limitations on loss recognition on cryptocurrency transactions and exchanges?
  • IRS position on whether cryptocurrency exchanges qualify for 1031 treatment and the impact of the enacted tax reform
  • What are the best practices in managing an IRS examination?

Faculty

Davis, Evan
Evan J. Davis

Principal
Hochman Salkin Toscher Perez

Mr. Davis represents individuals and closely held entities in criminal tax investigations and prosecutions, foreign...  |  Read More

Stein, Michel
Michel R. Stein

Principal
Hochman Salkin Toscher Perez

Mr. Stein specializes in tax controversies, as well as tax planning for individuals, businesses and corporations. For...  |  Read More

Toscher, Steven
Steven (Steve) Toscher

Managing Principal
Hochman Salkin Toscher Perez

Mr. Toscher has been representing clients for more than 35 years before the Internal Revenue Service, the Tax Divisions...  |  Read More

Access Anytime, Anywhere

Strafford will process CLE credit for one person on each recording. CPE credit is not available on recordings. All formats include course handouts.

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