Tax Reporting of Cryptocurrency: Calculating Basis, Income, and Gain
Determining Character of Gain and Basis in Mined Currency, Recognizing Filing Obligations and Prior Noncompliance
Recording of a 110-minute CPE webinar with Q&A
This webinar will provide tax advisers and compliance professionals with a practical look at IRS guidance to calculating and reporting income and gain on cryptocurrency (e.g., Bitcoin, Coinbase) transactions. The panel will discuss the IRS' position on cryptocurrency as property rather than cash, analyze IRS monitoring to increase compliance, and define proper reporting and tax treatment for "mining" and exchanging cryptocurrency.
Outline
- Types of cryptocurrency
- Means of obtaining cryptocurrency
- Initial tax guidance issued in IR 2014-36 treating cryptocurrency as property
- Challenges in determining valuation and maintaining basis schedules of virtual currency holdings
- Tax reporting requirements for cryptocurrency exchanges
- Disclosure requirements for cryptocurrency ownership
- Revenue ruling 2019-24, hard forks and air drops
- Questions on the tax treatment of virtual currency holdings and transactions
- Reporting payments to employees and contractors
- Voluntary remedies to noncompliance
Benefits
The panel will review these and other relevant issues:
- Limitations on loss recognition on cryptocurrency transactions and exchanges
- Income tax reporting requirements for cryptocurrency exchanges and valuations
- IRS position on whether cryptocurrency exchanges qualify for 1031 treatment and the impact of the enacted tax reform
- Challenges in determining basis on mined cryptocurrency
- How to properly account for hard forks as outlined in Revenue Ruling 2019-24
Faculty
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
Mr. Davis represents individuals and closely held entities in criminal tax investigations and prosecutions, foreign bank reporting, civil tax controversy and litigation, sensitive issue or complex civil tax examinations and administrative tax appeals, and federal and state white-collar criminal investigations including money laundering, Bank Secrecy Act, public corruption, FARA, campaign finance, and health care fraud.
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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
Mr. Stein specializes in tax controversies, as well as tax planning for individuals, businesses and corporations. For more than 20 years, he has represented individuals with sensitive issue civil tax examinations where substantial penalty issues may arise, and extensively advised individuals on foreign and domestic voluntary disclosures regarding foreign account and asset compliance matters. Mr. Stein is well respected for his expertise and judgment in handling matters arising from the U.S. government’s ongoing enforcement efforts regarding undeclared interests in foreign financial accounts and assets, including various methods of participating in a timely voluntary disclosure to minimize potential exposure to civil tax penalties and avoiding a criminal tax prosecution referral. Mr. Stein is a frequent lecturer at national and regional conferences on topics including tax compliance sensitive issues, IRS examinations, State and Federal worker classification issues, etc.
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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
Mr. Toscher has been representing clients for more than 35 years before the Internal Revenue Service, the Tax Divisions of the U.S. Department of Justice and the Office of the United States Attorney, numerous state taxing authorities and in federal and state court litigation and appeals. Mr. Toscher enjoys a unique combination of solid criminal defense experience and extensive substantive tax experience to assist individuals and entities subject to sensitive government inquiries. He has considerable experience as lead counsel in defending criminal tax fraud investigations (both administrative and grand jury investigations) as well as in defending criminal tax prosecutions (both jury and non-jury). Mr. Toscher’s tax practice includes a wide array of substantive areas including income taxes, estate taxes, employment taxes, sales taxes and property taxes. He is routinely involved in sensitive issue or complex civil tax examinations and administrative appeals on behalf of wealthy individuals and their closely held entities as well as large corporations involving both domestic and foreign tax related issues.
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