Millions of Americans have bought or sold cryptocurrencies, but few are aware that they have to pay taxes on their virtual currency investments. Even if you’re used to working with an accountant, here are four key reasons why you should think about filing your taxes with CryptoTaxPrep.com this tax season:
Most accountants just don’t know crypto.
Accountants and other tax professionals have a duty to serve their clients to the best of their ability. However, the tax code is thousands of pages long, and it’s nearly impossible to know the whole thing. Plenty of tax professionals dismissed cryptocurrencies as a fringe phenomenon, but they have become a growing part of the financial lives of millions of American taxpayers. How, why, and when cryptocurrency transactions are taxed are complicated questions, and only specially-trained crypto accountants know the answers.
The government is cracking down on unpaid crypto taxes.
Cryptocurrency gains and losses must be reported to the IRS. But in 2015, less than 1,000 people reported cryptocurrency investments on their tax returns. Given that thousands of cryptocurrency investors were already active in the U.S. at that time, the IRS has reason to believe that it’s owed taxes on cryptocurrency gains.
Crypto taxes are only getting more complicated.
The recent federal tax reform may have been designed to simplify the tax code, but in many ways, it accomplished exactly the opposite. While Congress made a few key clarifications in the new law, it left a great deal uncertain when it comes to how the IRS will deal with cryptocurrency taxes.
Digital payments are the future.
Cryptocurrency is the latest innovation in e-commerce. Electronic payments are growing more common by the day, and over 92% of U.S. taxpayers reported that they made online purchases this year. We’re likely to see more and more of these types of financial exchanges as time goes on, which means cryptocurrency is going to be a growing part of our increasingly digital lives. Cryptocurrency is more than just an investment, it’s the groundwork for the financial services industry of the future.
CryptoTaxPrep.com saves cryptocurrency investors money on their tax bills.
In 2018 alone, CryptoTaxPrep.com increased tax savings for crypto investors by an average of $983 with a total of $30 million in tax savings for all clients. Why mess with success? Work with CryptoTaxPrep.com and save money on your tax bills.