Unreported Crypto Income

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    Leading Tax Group

    Cryptocurrency has become one of the most controversial topics for investors. While people may disagree about whether you should invest in cryptocurrency, one thing is certain – cryptocurrency transactions are subject to taxation.

    The Internal Revenue Service (“IRS”) treats cryptocurrency as property.As such, it is treated for tax purposes similar to a stock. If you purchase cryptocurrency as an investment and sell it for a profit, you must report such profit as part of your investment income on your tax return.

    Such investment income is only one source of cryptocurrency income (“crypto income”). Crypto income can arise in many different forms.

    One example is from a cryptocurrency “mining” transaction where you receive cryptocurrency for doing work on the blockchain ledger. The receipt of such “mining” cryptocurrency is crypto income.

    Another example is from a cryptocurrency “airdrop” transaction where you receive cryptocurrency from a company for its marketing or promotional purposes. The receipt of such “airdrop” cryptocurrency is crypto income.

    A third example is from a transaction where you receive payment for goods or services in cryptocurrency. In these transactions, the cryptocurrency is treated for tax purposes similar to cash. If received as payment for goods, the cryptocurrency is crypto income to the extent it exceeds your tax basis in the goods. If received as payment for services, the cryptocurrency is fully crypto income as compensation.

    Regardless of the specific form, crypto income is taxable income to the IRS.

    If you received crypto income, but did not include it on your tax return, you have unreported crypto income.

    Unreported crypto income is treated the same as other types of unreported income by the IRS. It can expose you to significant adverse consequences.

    First, if you have unreported crypto income, you will be subject to interest and civil penalties on the unpaid tax liability with respect to the unreported crypto income.

    Second, if you have unreported crypto income, you will be subject to IRS collection procedures, including tax audits, wage garnishments, bank levies, and seizures of assets.

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    Third, if you have unreported crypto income, you may be subject to criminal prosecution and possible fines and incarceration. Unreported crypto income is against the law.

    As evidence that the IRS is becoming more concerned with cryptocurrency transactions, 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.

    In addition,in year 2021, the IRS announced the formation of “Operation Hidden Treasure”, consisting of a dedicated team of IRS fraud enforcement and criminal investigation professionals to address cases of unreported crypto income.

    What should you do if you have unreported crypto income?

    The response should not be to ignore the issue; putting your head in the sand will only exacerbate the problem.

    Instead, you need to address the issue with tax professionals who have extensive experience in working on unreported crypto income cases. You need the services of Leading Tax Group.

    Leading Tax Group has the two qualities that are critical to successfully resolving unreported crypto income cases – they understand the ins and outs of cryptocurrency and they have extensive experience in dealing with the IRS in helping taxpayers with their unreported income cases.

    If you have unreported crypto income, you need the aggressive and experienced tax representation of Leading Tax Group. Contact Leading Tax Group now!

    As evidence that the IRS is becoming more concerned with cryptocurrency transactions, 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.

    In addition,in year 2021, the IRS announced the formation of “Operation Hidden Treasure”, consisting of a dedicated team of IRS fraud enforcement and criminal investigation professionals to address cases of unreported crypto income.

    What should you do if you have unreported crypto income?

    The response should not be to ignore the issue; putting your head in the sand will only exacerbate the problem.
    Instead, you need to address the issue with tax professionals who have extensive experience in working on unreported crypto income cases. You need the services of Leading Tax Group.

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    Frequently Asked Questions

    Headquartered 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.

    The worst thing you can do is ignore it or take no action. This will move you closer to being levied. The best thing you can do is be proactive and call us for a quick analysis at 800-900-4250. IRS notices are time sensitive. Call or CONTACT US NOW

    We are one of the only tax resolution firms in the country that has a separate division dedicated to our clients that owe over $1 Million Dollars. The IRS formerly referred to their dedicated resource to pursue big tax liabilities as “the large dollar unit” of the IRS.

    As with any larger prize, the IRS can be considerably “more focused ” in their collection efforts. Your assets are essentially exposed for possible seizure unless protections are provided. Please call us at 800-900-4250 to start protecting your assets today.

    It is too costly to wait. CONTACT US NOW

    The IRS has simply made it easier to repay your taxes due based on making it easier to qualify for long standing programs offered by the IRS. Do you qualify for any of these programs? Call us at 800-900-4250 to offer facts, or CONTACT US NOW

    If the IRS levies your account, you are definitively in IRS collections. There may be a limited window of opportunity to get the funds back before they are forwarded to the IRS from your bank. Call us ASAP at 800-900-4250 for help or CONTACT US NOW

    If the IRS levies your wages, you are definitively in IRS collections. There may be a limited window of opportunity to reverse the process OR avert it all together. Call us ASAP at 800-900-4250 for immediate help or CONTACT US NOW

    If the IRS visits you in person, their intention is to collect on the taxes due OR have you commit to moving forward on a settlement based on their terms. Call us sooner than the IRS visit if at all possible OR immediately after the visit at the latest we will put together a strategy

    800-900-4250 or CONTACT US NOW

    Call us immediately upon this at 800-900-4250 or CONTACT US NOW

    A tax lien is an encumbrance upon which the IRS provides a guarantee that the tax debt will not go overlooked. It can affect your ability to borrow money and can have other negative effects. Please call us for a complimentary evaluation of your case. We can help in most cases 800-900-4250 or CONTACT US NOW

    This requires a good strategy, as the IRS will likely scrutinize delinquent returns filed all at once. Call us at 800-900-4250 or CONTACT US NOW

    This requires a good strategy as well, as the IRS will likely scrutinize your return(s) beyond your expertise to fend off unwarranted assessments. Going it alone can cost you far more ……in the end. Call us at 800-900-4250 or CONTACT US NOW

    An IRS audit can be prompted by many items on your return for which you must provide clarity, proof , including but not limited to :

    1)Excessive or inappropriate expenses declared on a Schedule, especially if your declared expenses exceed your declared income as a result.

    2)Suspected undeclared income

    3) Any and all suspected mis-categorizations or inaccurate entries on the return CONTACT US NOW

    It is crucial to put together a plan or strategy to deal with the past due p/r taxes, as the tendency to get further behind can jeopardize your entire business operation. Our team can structure a plan to repay the back taxes, stay current with new payroll obligations , as well as manage your other payables to keep your ship on track.

    Call us at 800-900-4250 or CONTACT US NOW

    Reaching this milestone based on overdue taxes should not have to be with the right help. We can take more facts related to the issues to structure a repayment plan to get you back to speed OR avert a shut down altogether in many cases. Call us at 800-900-4250 or CONTACT US NOW

    The State can mandate a repayment schedule not to your liking, involuntarily collect on the debt OR eventually close the business. A proper and proactive strategy can avert these inconveniences in many cases. Call us at 800-900-4250. We can take facts and put together and implement a plan that works for you. CONTACT US NOW

    Our team of expert practitioners can quickly evaluate you data to put together a comprehensive, accurate and conscientious return(s) to meet compliance standards to get you back to speed. Once we’ve helped you reach the mountain top….it’s all downhill from there… Call us at 80-90-4250 to get started or CONTACT US NOW

    Indeed, however, this embarrassment should not be a part of your future. This possible eventuality can often times be averted, and the aversion emboldened with our help. When a taxpayer is in IRS collections , we can get between you and the IRS to provide protections, get additional time to respond if warranted, and ultimately help settle on terms you can afford. CONTACT US NOW

    All cases are different based on the facts related to the case. Our team can help shorten the time that you are at the mercy of the IRS. Call us at 800-900-4250 for a quick analysis of your case. Avoiding the tax issue can have negative consequences for much longer than expected. CONTACT US NOW

    These are called SUBSTITUTE FOR RETURNS or SFRs. The IRS filed returns are based on gross reported income WITHOUT the benefit of items afforded yourself, such as Write Offs, deductions and credits. IRS filed returns can typically yield balances due that a much higher than the real balances due had you filed your own returns. We can help correct the record. Who wants to pay more in taxes than they actually owe? Call us for a quick analysis at 800-900-4250 or CONTACT US NOW

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    If you have unreported crypto income, you need the aggressive and experienced tax representation of Leading Tax Group. Contact Leading Tax Group now!