In the ABCast Episode 13 – Cryptocurrency and NFT Services Jan discusses the impact of onshore and offshore ownership of cryptocurrency and Non-Fungible Tokens or NFTs from a tax and accounting perspective. What are some of the common misconceptions US citizens tend to believe regarding IRS compliance, tax reporting and Crypto / NFTs? How will the IRS find out about your onshore and offshore cryptocurrency and NFT exchange accounts and transactions? What happens if you check the “no” box on the IRS Form 1040 regarding cryptocurrency when you actually own crypto or NFTs and have conducted transactions? Why is it a big deal to neglect to disclose crypto and NFT information to the IRS on your US tax return? How would a US taxpayer come into compliance with their responsibilities as a US taxpayer and why should they consider taking action to do so immediately?
ABCast Episode 13 – Cryptocurrency and NFT Services is a substantive conversation which provides extensive information for those who hold cryptocurrency and/or NFT assets either here in the United States or anywhere around the world. What is cryptocurrency? What is a Non-Fungible Token? Many crypto investors mistakenly believe their assets and transactions are hidden from the IRS and therefore do not need to be reported on the IRS Form 1040 and associated tax forms. What impact will reporting avoidance have upon taxpayers here in California? Did you realize that misrepresenting whether or not you hold crypto or NFT assets on the IRS Form 1040 (question near the top of the form) and/or signing an IRS or California tax return without fully disclosing your assets and transactions is not only a financial risk but a criminal offense punishable by prison time?
In ABCast Episode 13 – Cryptocurrency and NFT Services Janathan Allen explains why it is important to come into compliance with IRS disclosures, FBARs and other associated tax reporting forms at a federal and state level. Cryptocurrency transactions generate short-term or long-term capital gains. How will you determine the basis for each transaction and whether the resulting capital gain or loss is short-term or long-term? What are the services provided by Allen Barron which can answer your questions and provide truthful insight into your risks, exposure and remediation options?
You may wish to begin by downloading our new Allen Barron Crypto Reporting Guide which is an informative PDF while you enjoy the podcast. Listen to ABCast Episode 13 – Cryptocurrency and NFT Services and we hope you enjoy learning more about the important issues associated with crypto and NFTs from an accounting and tax perspective. You may face genuine risk of an IRS or California tax audit, as well as substantial financial penalties and interest as well as criminal exposure for perjury which can result in jail time. We invite you to meet with Janathan Allen and the experienced team at Allen Barron by contacting Allen Barron, or call 866-631-3470 to schedule a free consultation.
Read a Transcript of Episode 13 – Cryptocurrency and NFT Services
