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In this episode
As virtual currencies gain more traction in the marketplace, the IRS is taking notice. Your clients may be unaware of the tax reporting requirements and the tax implications from their cryptocurrency transactions.
In this Tax Section Odyssey episode, April Walker, CPA, CGMA, Lead Manager — Tax Practice & Ethics, Association of International Certified Professional Accountants, representing AICPA & CIMA, and Shehan Chandrasekera, CPA, Head of Tax Strategy — CoinTracker, delve into the cryptic world of virtual currency and discuss practical tax compliance tips.
What you’ll learn in this episode
History and the basics of cryptocurrency (1.01)
Advantages and benefits of owning and transacting with cryptocurrency (2.39)
Non-fungible tokens (NFTs) (4.18)
The taxation of cryptocurrency and IRS guidance (5.56)
Advice to clients regarding cryptocurrency activity and transaction tracking (8.39)
How to answer the virtual currency question on the Form 1040 (10.53)
Potential tax legislation and virtual currency (13.01)
What to do when a client receives an IRS letter or notice regarding virtual currency activity (15.07)
Journal of Accountancy podcast episode that focuses on the recent annual tax software survey (18.43)
Virtual currency tax guidance and resources — Consolidation of AICPA resources, comment letters and IRS guidance to help tax practitioners advise clients on cryptocurrency complexities
Blockchain & Digital Assets — Hub of resources around this increasingly-common technology
Coinmarketcap.com — Website consolidating the various cryptocurrency properties and current prices
IRS Notice 2014-21 — IRS guidance for individuals and businesses on the tax treatment of transactions using virtual currencies
Rev. Rul. 2019-24 — IRS guidance that addresses common questions by taxpayers and tax practitioners regarding the tax treatment of a cryptocurrency hard fork
The IRS also published Frequently Asked Questions on Virtual Currency Transactions for individuals who hold cryptocurrency as a capital asset and are not engaged in the trade or business of selling cryptocurrency
CoinTracker — Software to help track cryptocurrency investment performance and taxes.
Lukka — Data and software solutions to manage crypto assets on infrastructure built for the future of commerce. In December 2019, CPA.com announced a strategic alliance with Lukka to deliver crypto asset solutions to firms.
IRS Cryptocurrency Tax Letter Guide: 6173, 6174, 6174-A, CP-2000 — Step-by-step guide to help taxpayers know what to do if they receive a cryptocurrency-related letter from the IRS
Keep your finger on the pulse of the dynamic and evolving tax landscape with insights from tax thought leaders in the AICPA Tax Section. The Tax Section Odyssey podcast includes a digest of tax developments, trending issues and practice management tips that you need to be aware of to elevate your professional development and your firm practices.
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