In a startling move, Senator Mark Warren, Chairman of the Senate National Security Committee, has introduced the National Intelligence Authorization Act. Typically passed annually, this bill allocates funds to support national intelligence operations. However, this year's bill contains an unexpected twist.   Expanded Powers for the Treasury Buried within the bill's text is a provision granting the Department of the Treasury sweeping authority to monitor and seize digital assets, including cryptocurrencies.    This surprise addition has sent ripples through the crypto community ..read more

Introduction: A Surprising Shift in the Crypto Vote  We recently did a poll on X, revealing a staggering preference within the crypto community, potentially indicating a significant political shift.  With President Biden receiving only 8% of the crypto-related vote, a deeper analysis is necessary to understand the implications for the upcoming 2024 presidential elections. Poll Results and Political Implications    Who would you vote for President in 2024?#biden #trump #kennedy $trump $boden #bitcoin   — Clinton Donnelly (@CryptoTaxFixer) June 3, 2024   The poll ..read more

The Importance of Compliance Compliance with tax regulations is essential. The IRS is closely monitoring crypto transactions. Guy Ficco from the IRS Criminal Investigation Unit has noted an increase in what he terms "pure tax crimes."   Significant Enforcement Shift Failing to report or inaccurately reporting crypto transactions is not just a mistake. It’s considered tax fraud and evasion. According to Ficco, these are not mere oversights but criminal actions, highlighting a significant shift in how the IRS is approaching enforcement. The seriousness of IRS's new stance was underscored by ..read more

I recently had the opportunity to meet with Jordan Bush, the Executive Director of Thank God for Bitcoin.   The Journey from Uruguay to Bitcoin Advocacy Jordan Bush's evolution from a pastor and missionary to a leader in the Bitcoin community encapsulates his dedication after witnessing firsthand the financial instability in Latin America and Africa.   Witnessing Economic Turmoil Jordan's experiences across these regions emphasized how currency devaluation wreaked havoc, pushing him towards the Thank God For Bitcoin initiative to advocate for economic stability through Bitcoin.   ..read more

U.S. taxpayers find themselves at a crossroads of compliance and complexity, especially when dealing with foreign brokers and investments. The intricate laws and obligations surrounding foreign asset reporting and taxation can be a labyrinth for the uninitiated. However, understanding these regulations is crucial to safeguard against potential audits and legal implications. In this blog, we delve into the intricacies of foreign broker reporting requirements, shedding light on how U.S. taxpayers can navigate these challenges and remain compliant.   The Foreign Account Tax Compliance Act (F ..read more

Celsius's recent bankruptcy declaration in 2022, followed by the indictment of its CEO, Alex Mashinsky, early in 2023, has sent ripples through the cryptocurrency investment community. This event has raised numerous questions and concerns, particularly around the concept of clawbacks—a term that has become all too familiar for investors who had funds on the platform. There was a distribution from Celsius back to the people who had funds invested there, but many are concerned about the clawback. The Celsius Collapse: A Turning Point for Crypto Regulation and Investor Rights The downfall of Cel ..read more

By Clinton Donnelly Staying informed and compliant with tax regulations is extremely important, especially with the IRS increasing its focus on crypto transactions. In fact, 75% of U.S. crypto traders are now under scrutiny, particularly those who have not been reporting their crypto income on their tax returns. This blog post covers important developments that all crypto traders should be aware of in order to steer clear of potential legal issues. The Spotlight on Non-Reporting The IRS is aware that many cryptocurrency traders, both small and large, are not reporting their crypto income on th ..read more

By Clinton Donnelly In March 2024, the Biden administration unveiled its 2025 budget proposal, setting the stage for what promises to be an intriguing point of discussion in the upcoming campaign year. As the administration gears up for re-election, it's crucial for traders and investors, especially those in the cryptocurrency space, to understand the implications of this proposal. Here's a breakdown of what you need to know. The Heart of the Proposal The budget, detailed in a comprehensive document available on the U.S. Department of Treasury's website, outlines the administration's revenue p ..read more

By Clinton Donnelly Cryptocurrency taxation is currently experiencing a notable shift, which has drawn the interest of investors and traders. Central to this change will be the implementation of Form 1099-DA, which reflects the IRS's broader efforts to improve transparency and adherence to regulations in the digital asset sphere. The Genesis of Form 1099-DA In 2021,new legislation expanded tax code section 6045. This law lead to the creation of Form 1099-DA. This law required broker-dealers to report to the IRS the sale, exchange, transfer or any disposal of cryptocurrency assets. While Form 1 ..read more

If you're a cryptocurrency investor and you've received a CP59 notice from the IRS, it's time to pay close attention. You got this letter because they KNOW you didn’t file past tax returns, AND they know you made a lot of money. Ignoring this notice can escalate matters quickly, leading to severe financial and legal repercussions. Understanding the CP59 Notice A CP59 notice is the IRS's way of letting you know you didn’t file a return to report your crypto income. It's a serious matter that requires your immediate attention to avoid further complications. The Consequences of Ignoring Your Cryp ..read more