Cryptocurrency Audits
What is it?
If you’ve received a letter from the IRS regarding an audit involving your cryptocurrency holdings, it might be time to give us a call. An audit will require you to disclose all information about your accounts and holdings, and if mistakes have been made in previous tax returns, we’ll need to act fast to rectify them.
How does it work?
Financial statement audits are increasingly likely to include cryptocurrency transactions. The lack of legislation and guidance around cryptocurrency increases the risk of making a mistake. Because of the potential complications with this fairly new currency, it’s important for individuals and businesses to have the right representation whenever an auditor comes knocking. The problem will not go away on its own, and the longer you wait, the worse it will become.
Without reporting and validating your keys, the IRS has the power to summon you, come for you, or even charge you with fraud. The fact is that you can’t hide your cryptocurrency activity.
ETS Tax Relief will help you get through a cryptocurrency audit. Some of the things we do when representing you are:
- Review the problematic tax returns
- Calculate income, gains, losses, and cost basis
- Recreate transaction records
- Submit the revised tax returns
If you are being audited, seek help right away! We’ll guide you through the entire audit process.
Other Services
IRS & State Audit Representation
Nobody likes being audited! Unfortunately, it’s something you have to deal with if you’ve been selected for an audit, as ignoring it only makes it worse. IRS audits are the process of reviewing your accounts and finances to ensure you reported everything correctly. If this is happening to you, seek help right away!
IRS Payment Plans
An IRS payment plan, also known as an installment agreement, allows you to pay back your tax debt in a more manageable way. It’s also the most common way for taxpayers to pay their outstanding tax liability. You can negotiate a monthly payment that fits your needs instead of paying back a hefty lump sum.
Liens and Levies
The IRS has multiple tactics to collect the debt they say you owe. Two of these are liens and levies, which give the IRS the legal right to stake a claim on your property and actually take it. The good news is, you can get liens and levies removed with the right help on your side! Learn more about liens and levies here.