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Cryptocurrency

 

Digital Currency and Bitcoin Businesses Need Strong Representation for their Tax & Accounting Needs

Bitcoin and Digital Currency

Digital currency is the future of business, yet there are only a limited number of accounting firms that have the specialized knowledge needed to ensure that your business adheres to all current regulations and compliance issues. As the business continues to evolve, you need high levels of confidence in the management and analysis capabilities provided by your accounting professionals. Legacy Tax & Resolution Services has the expertise you need in this ever-changing market.

Every business needs to know that its accounting team is on top of its game, but it is critically important in digital currency services. Legacy Tax & Resolution Services provides cutting edge accounting, reporting and tax compliance services to companies in the United States and around the world. Our guidance has proven invaluable toward their ability to emerge as innovators in their field, allowing both entrepreneurs and enterprise businesses to flourish.

One of the most challenging aspects of the digital currency industry is that accounting regulations are continuously being developed and revised as new needs emerge. At Legacy Tax & Resolution Services, we are at the forefront of these developments and in constant conversation with both the SEC and the industry leaders responsible for putting new policies and procedures in place. We are constantly tracking guidelines and requirements to ensure that our clients have the most up-to-date information guiding their recordkeeping, disclosures and transaction practices.

Those seeking accounting expertise for blockchain, distributed ledger and digital currency businesses can place their trust in our understanding and technical knowledge, including our familiarity with most cryptocurrencies, such as

  • Bitcoin,
  • Ethereum,
  • Ethereum Classic,
  • Ripple,
  • Zcash,
  • Monero,
  • Dash, and
  • Litecoin.

Our dedicated professional team has a comprehensive knowledge of the many compliance requirements involved in these evolving technologies and markets. We understand that the unique complexities and challenges of this ever-changing business require a timely response to your concerns, so we prioritize frequent communication, flexibility and personalized attention. What differentiates us from other firms is not just our knowledge but our focus on providing proactive guidance and quick resolutions to all issues as they arise.

IRS Notice 2014-21 and Revenue Ruling 2019-24 are the only guidance available to date that the IRS has provided regarding cryptocurrency and leaves many users confused with knowing when taxes may be owed on their gains, mining income, or even payment as wages.

 

Our Services Related to Cryptocurrency

Traditional Tax Preparation

Our services are not limited to cryptocurrency taxation. Legacy Tax & Resolution Services has extensive tax planning, accounting and preparation expertise needed for an individual to run a successful and efficient business. We are dedicated to providing our clients with the knowledge that can handle complex tax situations as they arise.

Cryptocurrency Tax Advisory & Consulting

We will work together to tackle all of your cryptocurrency tax-related issues that may arise. No matter how complex your crypto tax issue is, Legacy Tax & Resolution Services is here to support you with guidance and creative solutions.

Tax Return Review or Preparation

If our clients would like us to work with their tax return preparer to make sure that their crypto activities are being reported properly on their return, we can supplement their services.

Cryptocurrency Tax Planning

Careful tax planning is critical to success in the unpredictable and volatile crypto economy. Legacy Tax & Resolution Services focuses on our taxpayer's objectives and formulates a consistent strategy in order to limit their tax liability and preserve wealth.

Cryptocurrency Tax Compliance

We assist our clients in the complexities of cryptocurrency tax accounting and compliance matters. These services include but are not limited to how to treat tokens received via hard forks and airdrops, how to treat initial coin offering (ICO) transactions by both investors and developers, and how to navigate the intricacies of reporting foreign financial assets as well as reporting foreign bank and financial accounts.

Cryptocurrency Investment Reconciliations

We provide our clients with reconciliations of their crypto investment activities. These reconciliation reports are furnished on either a weekly, monthly, or quarterly basis so that our clients know where they stand from a tax perspective throughout the year. These reconciliations are an essential tool for proper crypto tax planning and strategy.

Cryptocurrency Accounting

Despite the fact that crypto has essentially gone mainstream - the financial reporting for digital assets doesn't fit cleanly into existing accounting guidance under generally accepted accounting principles (GAAP) or under International Financial Reporting Standards (IFRS).

 

 

Unique Issues Related to Cryptocurrency

 

General Taxation of Cryptocurrency

Taxation of Airdrops

Taxation of Hard Forks

Taxation of Mining

Taxation of Staking

Taxation of Lending

Initial Coin Offerings

Taxation of Margin Trading

FBAR and FATCA Reporting

Tax Reporting Forms

State Taxes

 

 

 

 

Who We Serve

  • Individual Investors
  • Ancillary Businesses
  • Crypto Miners
  • Dispensaries
  • Extractors
  • Investors
  • Manufacturers

 

Cryptocurrency Services

  • Cybersecurity assessments
  • Forensic accounting and litigation support
  • Mergers and acquisitions
  • Operational consulting
  • State and local income/sales tax & protests
  • Strategic planning
  • Risk assessment
  • Tax preparation
  • Turnaround management & restructuring

 

Bitcoin Tax FAQ

Cryptocurrency Frequently Asked Questions

 

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