The digital age is upon us, and cryptocurrency investors are welcoming the virtual currency revolution with open arms. For the most part, Bitcoin investors are a tech-savvy bunch. Many of them are used to using software and mobile apps for just about everything, from ordering takeout to filing our taxes.
However, this tax season, many cryptocurrency investors used to filing their returns themselves online are facing new challenges. Many self-preparation services like TurboTax are limited in their ability to record the cryptocurrency trades you need to report to the IRS this year. For these people and many others who invested in cryptocurrencies this year, tax season has become unexpectedly stressful. To make matters worse, the IRS has been after cryptocurrency investors for unreported income, creating a real basis for high anxiety this time of year.
When it comes to filing your taxes, the old credence holds true: prior preparation prevents poor performance. Even if you’re a practiced procrastinator, don’t wait until the last minute to file your taxes this year. If you bought or sold cryptocurrencies in 2017, your returns will likely be more complicated than what you’re used to. In fact, due to the technical limitations of popular tax preparation software, you may not be able to self-prepare at all.
Lots of people get stressed out around tax time, and some for a good reason. If you traded cryptocurrencies before 2017 and failed to report your gains to the IRS, you may be at risk for an audit. The IRS received only 802 returns reporting cryptocurrency gains in the year 2015, and it’s on the hunt for coin traders who haven’t properly disclosed their income. As a result, cryptocurrency traders across the board are now facing increased scrutiny from the IRS, as well as an increased audit risk if their returns show any possibility of inaccuracy.
The IRS is a formidable foe, and you never want to be caught on the wrong side of an auditor’s desk. Even if you aren’t used to hiring a professional to help you with your tax return, now might be the time to start. In fact, consulting with a tax professional can give you peace of mind at a real value for your money. Not only will they make sure your returns are done right, the Certified Public Accountants at CryptoTaxPrep.com by Happy Tax can help you find tax deductions and credits that may not even be available on the DIY tax product you’ve purchased. The Happy Tax mobile app is easy to use, and the customized concierge service it offers can connect you with a CPA that can help ease your anxiety and keep you safe from the IRS this tax season.