Today’s crypto accountants and tax professionals struggle to handle and completely understand the world of cryptocurrency taxation. When crypto arrived over a decade ago, it created a wild west or gold rush for buying, selling, trading and investing into digital assets. However, in the midst of all the excitement, growth and publicity, very few people were asking the question of the potential tax ramifications: Is my crypto getting taxed?; How much do I need to pay?; Do I even need to report my assets?
Practicing accountants and tax practitioners likely knew that uncertainty or lack of official accounting and tax guidance would one day create pain points for them. But in the meantime, crypto investors continued to invest and the industry was flourishing. Yet at the same time, the world was expecting to see some form of regulation over this new asset class – but no regulation ever came.
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It was not until 2019 that the industry began to feel that the IRS and government was paying attention and really starting to take action. The first series of IRS letters sent to known crypto holders was the first sign of the crackdown. This ultimately created tremendous concerns and confusion for crypto holders, but even more so for the professionals required to handle these complex tax scenarios.
Even now during the unfortunate arrival of Coronavirus (Covid-19) rippling across the world, (traditional) tax is still a dominating news headlines. The continued growth of blockchain and cryptocurrencies furthers the need to better understand cryptocurrency tax, even in these dire times.
New and experienced tax professionals alike, remain uncertain on how to handle crypto tax and accounting, especially with a lacking legal framework. The recent IRS Virtual Currency Summit held in Washington DC proved that action and formal guidance are much needed and the IRS is starting to listen to industry leaders and professionals in the crypto space.
The Blox & Sovos Crypto Tax Report 2020 is this year’s first report to investigate and highlight the emerging challenges within the world of cryptocurrency taxation. Generated by responses and insights from U.S-based crypto CPAs, the report examines crypto tax industry landscape from three important perspectives: Tax Liabilities & Reporting, Accounting & Tax and Crypto Tax Technology.
This report includes:
- The legal and technical challenges accounting and tax professionals are facing when complying with evolving crypto tax reporting requirements
- Best practices for professionals supporting clients involved in cryptocurrency
- Insights from leading crypto accountants and tax practitioners on crypto reporting, auditing, cost basis allocation and taxation and more.
- The benefits of modern software for blockchain accounting, cryptocurrency tax reporting and finance operations
Anyone can now get an inside view into the world of crypto taxation, with facts and statistics provided by industry leaders, accounting firms and tax professionals. It not only highlights and illuminates challenges in the crypto space but also provides much needed quantitative information.
By collaborating, educating and generating data, more professionals, investors and businesses can learn how to connect and engage to address today’s evolving crypto challenges.
You can download the report today to learn more!