Goldburd | Goldburd McCone LLP

For nationwide tax guidance, call:
212-302-9400 or toll-free at 844-653-2873.

Goldburd | Goldburd McCone LLP

For nationwide tax guidance, call: 212-302-9400 or toll-free at 844-653-2873.

Serving Individual And Corporate Tax Clients Nationwide From Our New York, New Jersey, Florida And California Offices

Steven Goldburd and Benjamin A Goldburd

Since 1983, our tax firm has skillfully represented individuals and corporations across the United States and around the globe from our offices in New York, New Jersey, California and Florida.

IRS and DOJ warn Bitcoin investors: Report or face consequences

On Behalf of | Jul 18, 2019 | Tax Collection

These agencies recognize that the financial market is evolving. They realize investors are looking to cryptocurrency to diversify their portfolios.

In recent years, cryptocurrency has rebounded from a slump and is starting to climb. As a result, those who have invested in this market are starting to see their investment pay off … and the government has taken notice.

Cryptocurrency soars, government takes notice

The IRS and the DOJ have noticed that not every cryptocurrency owner is reporting the asset on their tax returns. As a result, some taxpayers may not be meeting their tax obligations for these assets. Agencies are ramping up their efforts to prosecute those who evade tax obligations through the use of cryptocurrency.

Prosecution more likely to move forward, taxpayers should consider reporting

In the past, these agencies had a difficult time getting their tax evasion charges against taxpayers using cryptocurrency to move forward. Juries would find it difficult to convict because they were unfamiliar with bitcoins and other forms of digital currency. This is no longer the case. The public is more aware of this form of currency. This could result in the prosecution finding success moving their case forward.

Because these cases are more likely to proceed, taxpayers should consider coming into compliance with tax obligations. Those who sell, convert or use bitcoins or other forms of digital currency to purchase goods are likely required to report the asset. If uncertain, it is wise to seek legal counsel. The attorneys with Goldburd McCone LLP can review your situation and provide guidance on the best way to ensure compliance.