Updates on IRS Fair Market Value and Specific Identification

The IRS opened e-filing for US taxpayers on January 27, 2020, and you can now use a number of free and paid online services to file taxes. Crypto users have seen a mixed year of gains and losses, depending on if, and when, trading was done through the year. Whether…

IRS Issues New Cryptocurrency Tax FAQ

The IRS has issued their long-awaited guidance on the tax treatment for cryptocurrencies. You can read their FAQ On Virtual Currency Transactions on the IRS website. This is the first official guidance since the original 2014-21 notice in April 2014. tl:dr; Crypto is still subject to capital gains. Airdrops…

Taxpayers Receiving IRS CP2000 Notice

The most recent IRS letter being sent out to cryptocurrency users, the CP2000 notice, is much more specific and informs the recipient of their proposed tax due. This is a notice that is sent out by the IRS when there are perceived discrepancies between what the taxpayer filed/paid and…

IRS sending letters to more than 10,000 crypto users

The IRS has begun sending out educational letters to more than 10,000 cryptocurrency users reminding them that they need to be including their crypto capital gains and losses on their tax forms. The users have been collected from various compliance measures, including the collection of records from Coinbase after…

Cryptocurrency Taxation in Canada

In Canada, Bitcoin and cryptocurrencies are considered commodities by The Canada Revenue Agency (CRA). The CRA treats cryptocurrency trades as barter transactions, which makes them subject to the income tax. The gains and losses from these trades must be reported when filing your taxes, where most individuals would report these…