As the new year rings in we are seeing more prevalent IRS action within the crypto space. The IRS has identified a potential 75% non-compliance rate in crypto tax reporting and plans to remedy this through enforcement actions. They have already begun the first steps with the Kraken Jon Doe summons, 1099-DA roll out and other measures.
As the taxpayer, you have a real conundrum on your hands; Self custody wallets don’t produce 1099s, centralized exchanges leave you subject to company failures such as FTX (not your keys, not your coins), and cost basis doesn’t transfer from one wallet or exchange to another.
Your past options:
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Go to your CPA, most don’t handle crypto without the 1099 from a centralized exchange.
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Go to a DIY site. Time consuming, complexity issues, and costly.
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Go to a Crypto CPA firm that can charge upwards of $500 per hour and $250 just for a consultation.
The goal:
Move your assets off centralized exchanges to a self-custody wallet to mitigate the company failure risk and be able to have the crypto portion of your taxes completed in a cost effective and non-time consuming manner with no security risks.
New solution:
Blockchain Crypto Tax Prep (Cryptotaxprep.io) will do the crypto tax calculation and produce the 8949 for your traditional accountant or yourself to be able to complete your tax return for $295*. You don’t have to divulge any personally identifiable information, no linking of your wallets, and completed in a matter of days. Book a Free 15 min consultation to discuss your situation and they will walk you through the process!
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