crypto investing

Why Are Crypto Investors Still Buying?

December 2021

Danger signs abound Despite its volatile and speculative nature, a single bitcoin is trading at around $61,134 (11/5/21.) Demand is growing exponentially, despite multiple danger signs. For example: The SEC, the U.S. Treasury, the DOJ, OFAC and the Financial Action

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Virtual Currency and tax

How Will Virtual Currency Be Taxed?

November 2021

Non-compliance with virtual currency (crypto) tax rules can cost taxpayers dearly It Depends Who You Ask! Despite the confusing interpretations by US regulators, non-compliance with crypto tax rules can cost taxpayers dearly. Unfortunately, the answer to “how is virtual currency

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cryptocurrency

Subprime Market Redux: Will Leverage Be Crypto’s Downfall?

November 2021

I Predicted the Subprime Lending Bubble’s Collapse. The Signs Are The Same For Cryptocurrency. When I predicted the bursting of the housing market’s subprime lending bubble in 2006, a lot of people called me crazy. And some of the people

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crypto asset

IRS Puts Brokers On The Hot Seat for Crypto Tax Reporting

November 2021

Definition of a broker is debated The Biden Administration’s 2021–2022 Priority Guidance Plan (the Plan) supports a push from the IRS and the US Treasury to more closely scrutinize the virtual currency industry.  Missing from the Plan? Specifics. Of note

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Virtual Currency Industry

OFAC Puts Virtual Currency Industry on Notice

November 2021

New Guide Includes Reporting Requirements and Potential Penalties In a new Sanctions Compliance Guide, The Office of Foreign Assets Control (OFAC) of the U.S. Treasury reiterates that obligations apply equally to transactions involving virtual currencies and those involving traditional fiat

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Virtual Currency Industry

Debunking Five Myths About Cryptocurrency

August 2021

A surge in cryptocurrency prices this year created many crypto paper millionaires and brought millions into the game. But the digital currency market is a rollercoaster ride. As a result, many of those fortunes have already evaporated as crypto prices

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Crypto currency and the IRS

The IRS Is Cracking Down On Cryptocurrency Tax Reporting

July 2021

If you’ve engaged in cryptocurrency or other virtual currency transactions worth $20,000 in any one year between 2016 and 2020, the IRS wants to hear from you. The IRS believes thousands of taxpayers are not telling the government about their

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Virtual Currency Industry

Upcoming Virtual Currency FBAR and FATCA Reporting Enforcement

July 2021

Under current FinCEN regulations, a foreign account holding virtual currency is not reportable on the FBAR.  However, FinCEN in its FinCEN Notice 2020-2, proposes amending reports of foreign financial accounts (FBAR) regulations to include virtual currency accounts as a type

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Virtual Currency Industry

Did you Engage in Virtual Currency Transactions in 2020?

May 2021

Taxpayers who engaged virtual currency   transactions in 2020 must answer a Yes or No Question on page 1 of Form 1040 or Form 1040-SR. The question is: “At any time during 2020, did you receive, sell, send, exchange or otherwise

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Crypto currency and the IRS

Operation Hidden Treasure is NOT a Treasure for Crypto Holders

May 2021

On March 6, 2021, Forbes reported that Damon Rowe, Director, Fraud Enforcement Office, Internal Revenue Service, Washington, DC, remarked that the IRS “added some crown jewels,” including a dedicated team of IRS Criminal Investigation professionals who are working on “Operation

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Virtual Currency Industry

IRS is Paying Attention to Virtual Currency Third-Party Information Reporting and Title 26

October 2020

On September 24, 2020, the TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION (TIGTA) issued a final audit report: “The Internal Revenue Service Can Improve Taxpayer Compliance for Virtual Currency Transactions”  that evaluates the IRS’s efforts to ensure accurate reporting of virtual

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Virtual Currency Industry

So much of Virtual Currency is still subject to Interpretation

June 2020

On February 12,2020, the U.S. Government Accountability Office (GAO) published a Report  on Virtual Currencies which discusses whether Taxpayers  who use Virtual Currency (VC) are fully meeting their tax obligations.   The purpose of the GAO report is to address IRS’

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