Filing taxes can be a painful task. Many people consider it a chore. It can be confusing, exhausting, and potentially a waste of time. Waste of time because you can put that time into other things that you understand better and are good at, which are also more important.
But of course, you can’t just abandon your tax report. Right?
Well, you don’t have to. You can hire a professional who can not only save your time and energy but can do the job better, leaving no room for errors.
This article will guide you through the different kinds of tax services you can choose for different purposes because a data processing expert can’t necessarily help you with legal tax advice and vice versa. So, it’s important you understand and know your options. You never know when you might need what.
Data Processing and Consultancy Services
Managing all transactions and reporting them on the appropriate tax forms is not always easy. There is room for errors and mistakes, even with a crypto tax software as reliable as Bitcoin.Tax.
This is where data processing and consultancy services come in.
It’s for people who want one-on-one custom help with a professional to look into their data to manage and find any missing piece or error that can potentially harm their tax report.
These services will help you with the following –
Importing data – A professional will help you import all the transactions and data necessary for reporting your tax.
Reconciling transactions – A professional will help you match the transactions and data recorded by the software against external sources to ensure that there are no errors or missing data.
Calculating capital gains – A professional will help you calculate and confirm your accurate long-term and short-term capital gains.
Processing large data sets – A professional will help you with processing large sets of data. This is where most of the errors and data go missing. That’s why it’s crucial to get help from a professional during this process.
Bottom line – if you don’t want to leave anything to chance and make sure your tax reports are on point, hire a professional.
However, it’s not as simple as hiring any professional. You need an expert who knows what they’re doing, is skilled, experienced, and doesn’t rob you blind in the name of quality services.
Bitcoin.Tax provides its own crypto tax help services where someone from the Bitcoin.Tax team will guide you through the entire process. It’s a global service available for everyone from anywhere in the world.
To know more, click here.
However, keep in mind that these services don’t include legal advice. For legal advice, you have to hire a CPA, which is what we’re gonna talk about now.
Certified Public Accountant (CPA)
Simply put, a Certified Public Accountant is a financial advisor that helps their clients plan and achieve their financial goals. In the context of crypto taxes, CPAs research their client’s income and expenses to find out the best ways to maximize returns before filing tax reports on behalf of their clients.
The following are some scenarios where you might consider getting help from a crypto tax CPA, a crypto tax attorney, or a crypto tax professional –
Complex cases – There isn’t anything specific that defines a complex case or situation, but as a rule of thumb, anytime you’re in doubt or aren’t sure about your tax report, you might wanna get help from a tax professional at the very least, if not a CPA or tax attorney.
Mostly, when there are too many exchanges, wallets, and third-party platforms involved, things can get complicated. To ensure you don’t miss anything or report anything incorrect, always seek help from a professional.
Tax reports for prior years – Every day, more and more people are starting to regret not reporting their crypto taxes in previous tax years because the IRS has been coming after everyone lately. However, filing an amendment and actually reporting your previous year’s taxes is far from easy. It’s highly complex and complicated, and if anything goes wrong, it can set you up even further back than you initially were.
That’s why you should get professional crypto tax help to sort this out as soon as possible.
Reduce the chances of an audit – More than anything, a crypto tax professional can make sure that there is no risk of any potential crypto tax audit, which is the number one concern for most people when filing taxes.
Although different people need different solutions, these are some of the ways a crypto tax attorney or CPA can help you –
- Understand crypto and be able to discuss it with you
- Assist in entering crypto trades into your crypto tax software
- Assist in tracking and reporting missing or lost records
- Reconcile unmatched transactions
- Provide full-service tax preparation for all tax forms
- Provide tax planning and strategies to identify crypto and non-crypto savings
- Provide advice for wash-sales, airdrops, staking, margin trading, and other complex crypto transactions
Wondering how you can find the right crypto tax professional for your needs?
Well, don’t. Bitcoin.Tax has got you covered again.
Bitcoin.Tax has partnered with Gordon Law, founded by Andrew Gordon, a tax attorney and Certified Public Accountant (CPA) practicing cryptocurrency tax law since 2014.
For any and every tax-related query or problem you might have, the team at Gordon Law has the answers.
However, their services are only available in the US and Canada.
To know more, click here.
You can also go to our directory of CPAs to choose from hundreds of tax professionals according to your needs. Plus, this directly includes CPAs that provide global services and aren’t just limited to the US and Canada.
Hire a Local CPA
At the end of the day, you can always hire a local CPA to get these services. However, beware that most local CPAs might not know what they are doing, and they can end up hurting your case more than they can help.
Apart from that, hiring a local CPA might seem like a better idea in many ways. They are easier to find, get in touch with, and cost much less than premium services. The only trade-off you make is the quality of the service.
Ultimately, it’s up to you if you’re willing to make this trade-off when it’s something as sensitive as taxes.
Good Sources for Crypto Tax Education and Knowledge
As we mentioned before, the IRS has been coming after everyone in the crypto space who is avoiding taxes. That’s why we must start educating ourselves and start consuming more information about crypto taxation.
The BitcoinTaxes Podcast is one of the very few podcasts talking about crypto taxation with such depth and detail. It’s one of the best sources of tax-related information.
Other than that, r/Bitcointaxes is also a great source because it’s a community that has experts, tax professionals, attorneys, and other people just like you.