IRS: Altcoin Trading is Taxable Event

Cryptocurrency traders often ask whether an altcoin trade, exchanging one cryptocurrency for another (e.g., bitcoin for ripple), is a taxable event.  For practical and financial reasons, many cryptocurrency traders hoped that it was not.  And many taxpayers that conceded altcoin trades were taxable, argued that like-kind exchange rules under I.R.C. sec. 1031 deferred the tax gain.   IRS did not resolve either issue in its IRS Notice 2014-21.  […]
read more

IRS Letter 6174-A, Questions Every Recipient Should Be Asking

Did you recently receive Letter 6174-A from the IRS. This is what you should about it and the questions you should be asking. Is this the IRS acting on Coinbase summons information?  It is a reasonable assumption, but the notice does not explicitly state that.  The notice indicates that the IRS “has information”, which could be from Coinbase or other […]
read more

IRS Launches Cryptocurrency Enforcement Campaign Likely Targeting Coinbase Account Holders

In 2018, Coinbase handed over information on more than 14,000 account holders to the IRS.  Since that time, cryptocurrency traders have held their breath waiting for IRS enforcement.  In June 2019, cryptocurrency traders are seeing the first step of that enforcement – IRS Letter 6174-A.  This has all the hallmarks of a wide-ranging compliance initiative.   First, Letter 6174-A is issued by […]
read more