Persons in Westlake Village, California desire to preserve the assets and wealth that they have accumulated. However, if you are in Westlake Village and transacting in cryptocurrency, but not reporting the income from cryptocurrency transactions (“crypto income”) for tax purposes, you may be proceeding in a manner that can cause you to lose your assets and wealth.
If you have unreported crypto income in Westlake Village, the Internal Revenue Service (“IRS”) can commence a tax audit against you. As a result of this tax audit, the IRS can cause you to lose your assets and wealth through any of the following:
The IRS can take other action against you for your unreported crypto income, including the assessment of interest and civil penalties and criminal prosecution (which can result in jail time).
According to the IRS, cryptocurrency is a type of property. Thus, if you purchase cryptocurrency and sell it for a gain, such gain is crypto income that needs to be reported for tax purposes.
Crypto income that needs to be reported for tax purposes also is realized if you receive cryptocurrency in exchange for the performance of services or the delivery of goods. If you performed services, the cryptocurrency is taxable as compensation; if you delivered goods, the cryptocurrency can be taxable if it exceeds your tax basis in the goods.
In addition, you will realize crypto income that needs to be reported for tax purposes if you receive cryptocurrency from a company for its marketing or promotional purposes in a cryptocurrency “airdrop” transaction or for working on the blockchain ledger in a cryptocurrency “mining” transaction.
The IRS is giving more scrutiny to cryptocurrency transactions, such that there is a greater risk that the IRS will find the unreported crypto income of Westlake Village taxpayers and take adverse action against them.
In “Operation Hidden Treasure”, the IRS has formed a dedicated unit of fraud enforcement and criminal investigation workers to uncover unreported crypto income.
The IRS has hired TaxBit, the cryptocurrency tax service provider, to assist with cryptocurrency tax audits, including unreported crypto income tax audits.
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Taxpayers had to answer the question, “At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?”, on their Form 1040 tax returns for taxable year 2020.
With this increased attention being given to cryptocurrency by the IRS, it has become critical that if you have unreported crypto income, you retain the services of tax professionals who can best aid you in your unreported crypto income case. You need to retain the services of Leading Tax Group.
While other tax professionals may claim that they can help you, there is no better choice than Leading Tax Group to help you in your unreported crypto income case because of Leading Tax Group’s substantial experience in aiding other Westlake Village taxpayers with their unreported income cases and detailed knowledge of how cryptocurrency operates and current issues regarding cryptocurrency.
To better serve its Westlake Village clients, Leading Tax Group has an office at 2625 Towns gate Road, #330, in Westlake Village.
If want to avoid losing your assets and wealth from your unreported crypto income, and live in the Westlake Village area, you need the aggressive and experienced tax representation of Leading Tax Group. Contact Leading Tax Group now!
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info@LeadingTaxGroup.com
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800-900-4250