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crypto tax audit crypto taxes Feb 22, 2023

Crypto traders looking to get into compliance often wonder if they should go back and amend their past returns or just file future returns correctly. We'll discuss a breakthrough technology that allows crypto traders to better handle fixing past crypto tax returns reported to the IRS.

Should you fix you past tax returns?

Many people ask if they should fix prior-year tax returns where they hadn’t reported crypto income correctly.

We have noticed that amended returns are being selected for audit five times more often than original returns in my practice. And trust me, nobody wants the agony or expense of being audited by the IRS.

Recent technological breakthroughs now allow traders a better option for handling past returns, so they can sleep better at night.

We know that’s a big claim. So let me explain how.

How do you protect yourself?

I started CryptoTaxAudit to help crypto traders protect themselves from the IRS. My tax law firm has prepared thousands of tax returns for large crypto traders and whales. Moreover, we have become the top specialty firm defending crypto traders being audited by the IRS.

Audit alert service for crypto traders.

New breakthrough technology now allows my company to monitor your IRS crypto returns weekly.

How can we monitor your IRS crypto returns weekly?

The IRS uses supercomputers to flag which returns to audit. If you get flagged for an IRS audit, crypto- or non-crypto-related, CryptoTaxAudit will notify you immediately.

On average, there are six months between when a return gets flagged and when a human auditor starts an audit. During those six months, we can fix virtually any problem and re-file your tax returns selected for audit before the audit even starts. This allows you to avoid the auditor’s 20%-40% accuracy penalty plus significant interest.

No one else in the industry is offering this type of service.

Fixing past returns for crypto trading.

Some crypto traders want to fix past returns but are rightfully concerned about attracting an audit. Instead, you can monitor your past returns, and as a result, only fix those returns that the IRS flags for an audit. Many crypto traders feel this is a safer strategy while waiting for the statute of limitations protection to kick in, usually three to six years after filing.

It’s also much less expensive to have CryptoTaxAudit monitor all your past returns than to amend all of them. Why throw good money after bad if you never get selected for an audit?

What about the dreaded CP2000 letter?

CryptoTaxAudit also monitors for under-reporting of income which is the most common cause of IRS examinations. When crypto traders under-report, the IRS adds up all your W-2 and 1099 forms to see if you accounted for all the income on your return.

Our technology can detect under-reporting and alert you before the IRS sends you a CP2000 examination letter.

No other service protects you like Audit Defense.

There is no other service like Audit Defense. In fact, it was created specifically for crypto traders and investors. Neither TurboTax, TaxAct, H&R Block, nor your friendly local accountant offers an early warning service. Add to that the expertise of CryptoTaxAudit in the event you are audited, and you’ve never had a better chance of winning your audit and releasing the worry and anxiety that happens during a typical two-to-three year audit process.

Companies like TurboTax, TaxAct, and others offer a type of passive audit protection that doesn’t kick in until after you get the audit letter. By then, it’s too late. The damage is done. And, they usually have a cap on what they will invest to defend you. Their passive audit protection looks cheap, but it will cost you tens of thousands of dollars.

If you own cryptos, it can take a lot of time, effort, and money to defend you. Plus, you need the right expertise. That’s why you need Audit Defense from CryptoTaxAudit.

CryptoTaxAudit monitors the last twenty years.

CryptoTaxAudit monitors the last 20 years of your returns regardless of who prepared them. The competitors only help with one year at a time. We monitor many more, all for the same price.

Learn more about IRS Guard Dog membership plans for every crypto trader and every budget.

DISCLAIMER: Opinions and perspectives of the author, host, and guests. It should not be construed as U.S. taxpayer advice. There are often multiple interpretations of tax law. Various strategies may be suited to specific individuals and for particular situations. Seek out professional tax, legal, or financial advice from CryptoTaxAudit or from other reputable companies.

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