Cryptocurrency Tax Preparation


After years of avoiding taxation, taxpayers may be required to report the fair market value of their digital currency holdings to the IRS. For 2019 taxes, there is a new question on Schedule 1 of the 1040 tax return: "At any time during 2019, did you receive, sell, send, exchange or otherwise acquire any financial interest in any virtual currency?"

Wachsler CPA is experienced with cryptocurrency taxation. You can trust us with your tax filings because we’re well-versed in cryptocurrency tax rules and regulations. We know how to accurately prepare and file your tax returns in line with the most current laws governing cryptocurrency so you avoid penalties, keep more money in your pocket and don’t get into trouble with the IRS.

Digital, virtual, and cryptocurrencies are treated as property. You may need to pay capital gains taxes (Schedule D) on any cryptocurrencies that you used to:

  • Trade or sell cryptocurrency to fiat currency such as the US Dollar, Euro, Yen, etc.
  • Trade one cryptocurrency for another cryptocurrency
  • Use cryptocurrency to purchase goods or services
  • Receive payment of cryptocurrency for services that you performed
  • Receive digital / cryptocurrency resulting from a fork and/or airdrop

These rules apply to all digital and cryptocurrencies including Bitcoin (BTC), Ethereum (ETH), Litecoin (TLC), Dash (DASH), Ripple (XRP), Bitcoin Cash (BCH), etc. You may also be required to file an FBAR and possibly IRS Form 8938 and report all of the digital and cryptocurrencies that you currently own. And, if you don’t report your virtual transactions properly, the IRS may go after you for penalties and interest and, in some cases you may even face criminal prosecution.

Cryptocurrency Tax Services

Reporting digital currency on your tax returns is not simple but our CPA firm will guide you through this process and get you up to date on your crypto tax filings. Call us now at 781-883-3174 to learn more request your free consultation through our website.

  • Preparing cryptocurrency tax returns
  • Amending past tax returns
  • Filing back tax returns
  • Preparing FBAR (FinCEN Form 114)
  • Preparing IRS Form 8938
  • IRS tax problem resolution

Cryptocurrency CPA Firm

Wachsler CPA specializes in cryptocurrency tax services and made a recent presentation explaining taxable events using digital currency. Download her presentation to learn more or call 781-883-3174 to find out how we can advise you on the rules and regulations for cryptocurrency taxation.

Download Irene Wachsler's presentation on Blockchain & Digital / Crypto / Virtual Currencies