The IRS Voluntary Disclosure Program or VDP for Cryptocurrency and Offshore Accounts and Assets
What is the IRS Voluntary Disclosure Program or VDP for cryptocurrency and offshore accounts and assets? Are you searching for a proven and experienced firm who offers sound advice as well as domestic and international tax services for cryptocurrency investors? Are you concerned about undisclosed or unreported cryptocurrency or Non-Fungible Token (NFT) assets?
Fortunately there are reasonable solutions to previously unreported or unreported cryptocurrency and NFT assets. The IRS has recently released crypto-related updates to the Voluntary Disclosure Program or VDP which allows US taxpayers to disclose previously unreported information regarding offshore assets, financial accounts, and specifically cryptocurrency holdings to the IRS.
Did you know the IRS is receiving automated information and transactional reporting from cryptocurrency and NFT exchanges around the world? There are simply no more secrets from the IRS, California and other state tax agencies.
IRS VDP for Cryptocurrency and NFTs : What Does a Crypto or NFT Investor Need to Know?
The Voluntary Disclosure Program or VDP for cryptocurrency and offshore accounts and assets provides additional relief to US taxpayers who have “non-willfully” or inadvertently under-reported foreign bank or investment accounts, or gross income earned offshore from a variety of sources including:
- foreign stocks and investments
- Cryptocurrency or NFT holdings in offshore or domestic exchanges
- foreign bank or investment accounts
- bank accounts for foreign branches of US banks
- foreign hedge funds and private security funds
- foreign mutual funds
The information relating to balances or income from these sources should have been fully disclosed on FBAR or other foreign information related IRS forms, and resulting US taxes should have been paid.
The IRS is offering resident US taxpayers the opportunity to avoid paying additional penalties including the FBAR penalties, information return penalties or accuracy-related penalties. These penalties can amount to a significant additional cost, especially when taken over a period of several years. The “look-back” period for the IRS relating to these issues is 8 years.
The taxpayer will still be responsible for paying the offshore penalty provisions contained within Title 26, for all accounts and investments associated with these provisions during the years in the “covered tax return period and covered FBAR period.”
It is Time To Learn More about Allen Barron’s Tax Services and the IRS Voluntary Disclosure Program or VDP for Cryptocurrency Investors
The good news for cryptocurrency and NFT investors is there are strategies for coming into compliance with IRS, California and other state tax reporting requirements. We offer specific strategies which include protections under the “attorney-client privilege” to allow you to have a candid assessment and discussion of where you personally stand, the risks you might face and the options available to you as a US taxpayer.
It’s time to learn more about how the IRS tracks crypto and NFT transactions and accounts on international exchanges around the world and the IRS Voluntary Disclosure Program or VDP for Cryptocurrency and Offshore Accounts and Assets.
Let Allen Barron help you to come into compliance with all complicated IRS and state tax requirements. Our tracking software can go back into prior years to properly summarize and report activity that may have been neglected. Take advantage of our tax services for cryptocurrency investors while reducing or eliminating legal and financial risk and restoring peace of mind.
Learn more about the ramifications of prior years’ cryptocurrency transaction underreporting and resulting tax exposure as well as our strategies to help our clients to come into compliance while mitigating their legal and financial risks and exposures.
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Contact Us To Learn More About Allen Barron's Domestic and International Tax Services for Cryptocurrency Investors
For more information or to discuss your tax, legal and accounting needs contact Allen Barron or call 866-631-3470 to schedule a free and confidential initial consultation. Learn about the importance of integrated business strategy and coordination across legal, tax and accounting systems.
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