Tag Archives: Bitcoins

If You Used Poloniex and Did Not Report Your Crypto…

Posted on April 2, 2021 by Russ

…now is a very good time to amend your tax returns to include those cryptocurrency gains and losses.  The Department of Justice announced that a federal court in Massachusetts ordered Circle Internet, the former parent company of Poloniex, and Poloniex … Continue reading →

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No, You Weren’t Allowed to Do a Like-Kind Exchange for Cryptocurrency Before 2018

Posted on November 14, 2019 by Russ

A question that has come up is whether you could do a like-kind exchange for cryptocurrency prior to 2018. (The Tax Cuts and Jobs Act eliminated all like-kind exchanges for everything except real property beginning with the 2018 tax year.) … Continue reading →

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Should You Be Reporting Cryptocurrency Held in a Foreign Exchange on the FBAR and Form 8938?

Posted on August 5, 2019 by Russ

It’s been assumed that the answer to the question I posed as the title to this post is “Yes”, that you should be reporting cryptocurrency held in foreign cryptocurrency exchanges on the FBAR. However, the AICPA Virtual Currency Task Force … Continue reading →

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IRS Sending Letters Based on Coinbase Summons

Posted on July 26, 2019 by Russ

In 2017 the IRS won its fight with Coinbase, and received information from that cryptocurrency exchange on customers who traded cryptocurrency. Today, the IRS announced that they’re sending letters to individuals who may need to file or amend their returns … Continue reading →

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The Deep State and Cryptocurrency

Posted on May 17, 2018 by Russ

There have been plenty of articles about the “Deep State” vis-a-vis President Trump. I’m not going into that; if you’re interested, Google is your friend. Rather, I’m going to look at the Deep State and cryptocurrency. On May 1st the … Continue reading →

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Bozo Tax Tip #1: Ignore Cryptocurrency Sales!

Posted on April 13, 2018 by Russ

Last week (as I write this), I met with a new client. He purchased a lot of cryptocurrency in 2016 but didn’t sell any of it until around Thanksgiving of 2017 (he had one small sale). He asked me if … Continue reading →

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SEC Reportedly Launches Cryptocurrency Probe on ICOs

Posted on February 28, 2018 by Russ

The Wall Street Journal is reporting (pay link) that the Securities and Exchange Commission (SEC) has issued “scores of subpoenas and information requests” regarding digital tokens (aka Initial Coin Offerings, or ICOs). That regulators are starting to look into this … Continue reading →

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Coinbase To Comply With IRS Summons

Posted on February 24, 2018 by Russ

Two of my clients received an email from Coinbase: Dear Mr. Smith, In December 2016, the Internal Revenue Service issued a summons demanding that Coinbase produce a wide range of records relating to approximately 500,000 Coinbase customers. Coinbase fought this … Continue reading →

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Are Cryptocurrency (Bitcoin) Transactions Always Short-Term?

Posted on December 9, 2017 by Russ

One of my clients sent me a link to a tweet (on Twitter) from Peter Brandt: Nope. Wrong. The IRS will not consider BTC for long term gains. Short-term no matter how long held. — Peter Brandt (@PeterLBrandt) December 8, … Continue reading →

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IRS Mostly Wins Coinbase Summons Fight

Posted on November 29, 2017 by Russ

The IRS has been battling Coinbase, the United States’ largest cryptocurrency exchange, in a fight to obtain information about individuals who sold Bitcoins during 2013, 2014, and 2015. The IRS issued a summons to Coinbase–basically, an administrative demand for information. … Continue reading →

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