Segal, Cohen & Landis, P.C.
IRS Cryptocurrency Tax Compliance and Audit Defense
IRS tax attorneys — Beverly Hills, CA. National representation.
The IRS has made cryptocurrency a priority enforcement area. Brokerages now issue 1099-DA forms for crypto transactions. The IRS receives blockchain transaction data from exchanges. John Doe summonses have been issued to Coinbase, Kraken, and Circle demanding user data. If you have unreported cryptocurrency gains from any year, the IRS likely knows about it.
Cryptocurrency is property for US tax purposes — every sale, exchange, or use of crypto to purchase goods or services is a taxable event. Mining income is ordinary income. Staking rewards are taxable. DeFi transactions create complex gain and loss recognition events.
How We Help
Our Approach to Cryptocurrency Tax Attorney
Crypto Tax Compliance
We prepare accurate cryptocurrency tax returns for any number of transactions — including complex DeFi, NFT, mining, staking, and cross-chain transactions. We work with blockchain analytics tools to reconstruct transaction histories.
Crypto Audit Defense
IRS crypto audits focus on unreported income, basis calculation errors, and unreported foreign exchange holdings. We represent you before IRS examiners and challenge the IRS's calculations.
Voluntary Disclosure for Unreported Crypto
If you have unreported crypto gains from prior years, proactive disclosure is far better than waiting for an IRS notice. We evaluate the appropriate disclosure method and guide you through the process to minimize penalties.
Foreign Exchange Compliance
US taxpayers holding crypto on foreign exchanges may have FBAR and Form 8938 reporting obligations. We assess your foreign crypto holdings and ensure all required reports are filed.
How It Works
The Resolution Process
Transaction History Reconstruction
We gather exchange records, wallet transaction histories, and blockchain data to reconstruct your complete crypto transaction history.
Tax Calculation
We calculate gain and loss for each taxable event, select the optimal cost basis method, and identify any positions requiring disclosure.
Return Preparation or Disclosure
We prepare accurate current-year returns or, if prior years are involved, develop and execute the appropriate disclosure strategy.
Audit Defense
If the IRS is already auditing your crypto, we take over representation and build a complete factual and legal defense.
Ready to Resolve Your Tax Problem?
Our attorneys have helped thousands of clients resolve IRS matters. Your consultation is free and confidential.
Common Questions
Frequently Asked Questions
Is crypto taxable in the US?+
Yes. The IRS treats cryptocurrency as property. Every sale, exchange, or use of cryptocurrency is a taxable event. Mining and staking income is ordinary income. Gains and losses must be reported on Schedule D and Form 8949.
How does the IRS know about my crypto?+
US exchanges (Coinbase, Kraken, Gemini) report user transaction data to the IRS via 1099s and in response to John Doe summonses. The IRS also uses third-party blockchain analytics companies to trace transactions on public ledgers.
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Further reading
Beverly Hills · Los Angeles · National
Segal, Cohen & Landis, P.C.
9100 Wilshire Boulevard, 601 East Tower, Beverly Hills, CA 90212
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