There are differing views in Sherman Oaks, California about whether cryptocurrency is a good or bad investment. Whatever your point of view about cryptocurrency, if you engage in cryptocurrency transactions in Sherman Oaks, there is no doubt that the Internal Revenue Service (“IRS”) will view your income from these transactions as subject to taxation.
According to the IRS, cryptocurrency is a type of property. It is treated similar to stock for tax purposes. Just like with stock, if you invest in cryptocurrency and then sell it and realize a gain, such gain must be declared on your tax return as investment income.
This investment income is only one form of cryptocurrency income (“crypto income”). Crypto income can be realized in many different ways.
If you reside or perform business in Sherman Oaks and receive cryptocurrency for doing work on the blockchain ledger in a cryptocurrency “mining” transaction, and fail to report the cryptocurrency as income on your tax return, you have unreported crypto income.
If you reside or perform business in Sherman Oaks and receive cryptocurrency from a company for its marketing or promotional purposes in a cryptocurrency “airdrop” transaction, and fail to report the cryptocurrency as income on your tax return, you have unreported crypto income.
The receipt of cryptocurrency as payment for goods or services by a person who resides or performs business in Sherman Oaks is crypto income. If received for goods, the cryptocurrency is crypto income if it exceeds the tax basis in the goods. If received for services, the cryptocurrency is crypto income as compensation. If you fail to report this income on your tax return, you have unreported crypto income.
Unreported crypto income in the Sherman Oaks area is treated by the IRS the same as other types of unreported income. If you have unreported crypto income, you will be subject to major negative consequences.
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Our experts will educate you in the mistakes made previously to help avoid getting into a similar mess in the future.
You will have to pay interest and civil penalties on the unpaid tax liability from the unreported crypto income.
You will face a host of IRS collection procedures, including tax audits, bank levies, wage garnishments, and seizures of assets, from the unreported crypto income.
Unreported crypto income is against the law; if you have unreported crypto income, you can be subject to criminal prosecution and possible fines and incarceration.
There is increased scrutiny of cryptocurrency transactions.
This year, the IRS announced the creation of “Operation Hidden Treasure” – a dedicated team of IRS personnel to investigate unreported crypto income.
In addition, the question – “At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?” – appears on the first page of year 2020 Form 1040 tax returns.
If you have unreported crypto income in the Sherman Oaks area, the solution is not to ignore the problem.
Instead, you need to act and retain the services of qualified tax professionals who can help you resolve your unreported crypto income issues. You need the services of Leading Tax Group.
Leading Tax Group is your best choice to represent you in your unreported crypto income case in the Sherman Oaks area because 1) it knows about cryptocurrency issues, and 2) it has extensive experience in assisting taxpayers to successfully resolve their unreported income cases.
Leading Tax Group also has an office in Sherman Oaks at 15233 Ventura Boulevard, Suite 1301.
If you have unreported crypto income, and live in the Sherman Oaks area, you need the aggressive and experienced tax representation of Leading Tax Group. Contact Leading Tax Group now
read more Contact UsHeadquartered in Encino, California with multiple local branch offices in your backyard to serve you at your convenience. Leading Tax Group can schedule a face to face consultation to represent your case with the IRS, FTB, EDD, as well as CDTFA Audits.
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