What To Know About Reporting Bitcoin For Tax Purposes
Bitcoin is a virtual, digital currency that is increasing in popularity. It is also increasingly accepted as legal tender by many companies for goods and services. Seen as an excellent investment, Bitcoin is often just held as savings by individuals who obtain Bitcoin. However, the tax implications of acquiring Bitcoin are less widely known and can have consequences if not addressed.
At the Law Offices of Robert T. Leonard, APC, we stay up to date on all tax issues that pertain to Bitcoin and other types of cryptocurrency. Founding attorney Robert T. Leonard is also a certified public accountant (CPA) with years of tax law experience. From our firm’s offices in Woodland Hills and Los Angeles, Mr. Leonard provides insightful, professional and comprehensive representation to Bitcoin holders throughout California.
Failure To Report
Many people who have engaged in using Bitcoin have done so before knowing the tax implications. This can lead to serious IRS complications. One of the main issues individuals face is the failure to report their cryptocurrency activities on their tax returns. The failure to report income or another taxable property, as Bitcoin is, often carries consequences such as IRS audits, fines and even criminal charges if the failure was severe enough.
This is why it is so crucial to talk to an attorney before you file taxes and especially if you have been notified by the IRS that you are being audited due to Bitcoin or other cryptocurrency tax issues. Mr. Leonard is highly skilled in all manner of tax matters, staying on top of the ever-changing laws that apply to cryptocurrency. He can assist you in understanding how to approach your situation and how it may impact you personally, financially and professionally.
Know Your Options And Obligations
Do not begin or continue investing in Bitcoin or other types of cryptocurrency without knowing how it will impact you when tax time comes. To discuss your situation, schedule a free, confidential consultation at our firm. Call our offices toll-free at 888-408-9486 or locally at 818-224-7935. You can also contact us using our online form.