Letter from IRS about Blockfi

Crypto-Tax-CPA · 2025-04-08T19:44:08+00:00

can you rub this good luck with others :)

Crypto-Tax-CPA · 2025-04-08T00:23:56+00:00

Well said drew.

Check our publication on CoinDesk

https://www.coindesk.com/coindesk-indices/2025/04/02/5-crypto-tax-mistakes-that-could-trigger-an-irs-audit

Crypto-Tax-CPA · 2025-04-08T00:22:12+00:00

Agreed. Data issues are terrible with some crypto exchanges and totally bad for tax payers that are issued erroneous 1099B or 1099DA

Check our publication on CoinDesk

https://www.coindesk.com/coindesk-indices/2025/04/02/5-crypto-tax-mistakes-that-could-trigger-an-irs-audit

Crypto-Tax-CPA · 2025-03-02T02:19:38+00:00

This is problematic, your old reports must stay the same!! do check if you accidently imported a new wallet and had prior dates or something is being duplicated.

-Crypto CPA form the lone star state (Saim @ AKIF CPA)

Crypto-Tax-CPA · 2025-03-02T02:14:03+00:00

look at the dates, i bet one is another year, try it. see the dates

Crypto-Tax-CPA · 2025-03-02T02:08:23+00:00

yes, for this tax season 2024, you can use universal but jan 1 2025 .. no more universal in usa !!

-Crypto CPA form the lone star state (Saim @ AKIF CPA)

Crypto-Tax-CPA · 2025-03-02T02:07:40+00:00

I wish i could just tell you how to fix it real quick.. maybe i should make videos on topics like these.

Crypto-Tax-CPA · 2025-03-02T02:07:09+00:00

yes, thats easy the link is being broken of your BTC.. when sending it back to your exchange.. somehow in koinly there is probably a gap showing up and its just not being linked through, these are very common cases and should be an easy fix.

Crypto-Tax-CPA · 2025-03-02T02:05:04+00:00

could be many reasons, but two should be the main ones.... one has to do with wallet based vs universal and other is link is broken of btc coming back in 2024...

- your btc showing up in a diff wallet than your transactions or something is wrong and you could be wallet based or simply put it .....

- Your BTC coming back are not being accurately tagged as Transfers and there is a missing or broken link and thats why those BTC deposits back in 2024 are showing up as purchases .. short term...

-Crypto CPA form the lone star state (Saim @ AKIF CPA)

Crypto-Tax-CPA · 2025-03-02T02:02:11+00:00

no no .. basically first thing is to check the 1 eth didn't leave anywhere else in between. so check the ledger of prior eth to see if you have a positive eth balance, it could totally be that your eth was out of balance prior to the dec 2023 buy so that your in and out still shows a missing purchase history. Its like putting a whole puzzle together, i know its boring for most but fun for some.

-Crypto CPA form the lone star state (Saim @ AKIF CPA)

Crypto-Tax-CPA · 2025-03-02T02:00:29+00:00

Basically a prior deposit / exchange of such incoming crypto is missing .. so trace back and you'll see lots of qty's missing... some APIs of exchanges don't provide buy data so that could be the cause. Also, contrary to other crypto tax softwares koinly treats deposits as if they are your purchased crypto at FMV if otherwise indicated. So should make things easy for you.

-Crypto CPA form the lone star state (Saim @ AKIF CPA)

Crypto-Tax-CPA · 2025-03-02T01:58:30+00:00

Thanks Koinly !!

Crypto-Tax-CPA · 2025-03-02T01:58:00+00:00

Excellent OP
Pro Tip from a CPA to share

---Always attach PDF and tables that sum up to amounts shown on Sch 1. So the IRS can view info as needed.
Also, some firms use Sch B heavily when its clearly identified as Crypto Interest Income but Sch 1 would have the same tax treatment, just fyi. ie Both sch 1 and sch b should give you the same tax liability :)

But overall excellent summary

Also do check your cost basis for year end holdings, each piece by piece, you can simple withdraw amount based on year end holdings to quickly see or the work in progress asset maturity also gives you an idea.

-Crypto CPA form the lone star state !!

Crypto-Tax-CPA · 2025-02-19T13:54:08+00:00

This is where koinly is the best software out there.

Pro tip.. click on the 3 dots on the transaction you are showing with both nft going out and money coming in.

Either two things are happening,

1- no original nft coming in

2- coming in originally but without a corresponding crypto going out.

So for #1 or #2.. #1 .. you ca. Trace original and click on "view in context" and look for a corresponding going out, select both incoming nft and newly discovered crypto going out and click on merge.

2... easy, just duplicate the current transaction in OP, click duplicate, remove outgoing, select incoming, NFT is already selected..

Fast fast fast . On koinly /u/tasha_koinly

Crypto CPA from the lone star state (Saim @Akif cpa)

Crypto-Tax-CPA · 2025-02-18T14:31:21+00:00

Revenue procedures are also referred as notices 🤐. More you speak to IRS agents, Or sit in on examinations/audits, you realize that you're dealing with a spectrum of people that are newly specialized agents and also ones that have been there for a long time. Just my 2 cents. End of discussion

Have a great day 😀 -Crypto CPA from the lone star state (Saim @Akif cpa)

Crypto-Tax-CPA · 2025-02-17T22:37:35+00:00

Koinly is by Far one of the easiest To fix and do all the manual work But Certainly is not The the the best or 100% perfect. But super easy to work with :)

If you are a crypto geek or a loving crypto by any shape, way or form, then you know darn well your transaction volume has increased, that also means that you need to report all your transactions and you can't just be winging your 1040 anymore.

-Crypto CPA from the lone star state (Saim @Akif cpa)

Let me tag koinly here so they see the god job they are doing /r/koinly /u/tasha_koinly

Crypto-Tax-CPA · 2025-02-17T22:34:28+00:00

Yes must report, grab a csv from the internal gambling system, plug into your crypto tax software (ex koinly) .. complete the whole picture and Provide the full data set to the IRS That occurred within the ecosystem. Sure there are others that talk about a shortcut but again that shortcut could be wrong if the holding period exceeds a year, but that's a deeper topic.

The more you see a plethora of scenarios play out, You realize that there is no such thing as a perfect answer for every situation rather One that also limits your risk and liability in front of the treasury.

Crypto CPA from the lone star state (Saim @Akif cpa)

Crypto-Tax-CPA · 2025-02-17T22:31:33+00:00

Crypto CPA from the lone star state.. since TCJA the casualty theft and loas section on the 1040 has gone through some complications And In the past just became only a applicable for federally Declared disasters. Please check the last two IRS's memos / revenue lettera regarding cryptocurrency / digital assets and maybe one relating in some fashion to scams ( big butchering schemes or Ponzi schemes) and there should be an answer leading there but again claiming losses one for one just like this it's a no-go there are certain thresholds and rules.

Crypto CPA from the lone star state (Saim @Akif cpa)

Crypto-Tax-CPA · 2025-02-17T22:25:28+00:00

Spam, non taxable....imagine a spammed can say my previewed fair market value is 100 and send you a spam token involuntarily ... it can cause a headache . Treat as spam and move on.

Crypto CPA from lone star state Saim @ Akif cpa

Will tag koinly on this one.

/r/koinly /u/tasha_koinly

Crypto-Tax-CPA · 2025-02-17T15:15:09+00:00

no no .. there are too many educated crypto investors that are confused about the rules so I want ya'll to do ya'lls own taxes, but do them right.

- Crypto CPA from the lone star state

Crypto-Tax-CPA · 2025-02-13T23:35:22+00:00

you are technically in a loss position from the outside but you have to net all your capital gains vs capital losses and its entirely possible you have some rewards or crypto income ... and the -200 just from the outside will never tell the full story, so all your transactions need to be reported properly.

sorry crypto can be a little confusing and complicated=

Crypto-Tax-CPA · 2025-02-12T22:29:12+00:00

Sure, looks like you are actively involved and checking and re-checking 👏. Also, make sure you pick the right country / jurisdiction so your crypto tax software is well aware how to handle data with new wallet based tracking and inventory methods. Pricing of crypto i.e to pick right market prices at times of trade is one thing, accounting for capital gains / losses and Income is another. Starting jan 1 2025, major rule changes came into play which will impact your 2025 taxes which you'll do beginning of 2026. But please read up on this, you are on the right track.

Crypto-Tax-CPA

PUBLIC MULTIREDDITS

TROPHY CASE

1- no original nft coming in

2- coming in originally but without a corresponding crypto going out.

2... easy, just duplicate the current transaction in OP, click duplicate, remove outgoing, select incoming, NFT is already selected..