There are other ways to avoid crypto taxes besides tax harvesting
I’m a tax professional since 1999/2000 — Now retired and traveling the world. Kinda enjoy helping crypto investors understand the tax situation.
I get it.
Someone seven or eight years ago said, buy this, meaning buy crypto. They told you that you would become wealthy and they also told you that the IRS would never know, because of the blockchain.
Well, they were half right.
You did become wealthy, depending on how much you invested, but the IRS found a way to learn about your crypto transactions.
How? How did this happen?
Well, the IRS aka Department of Treasury went to court and said, We want access to all information on accounts opened using an U.S. identification, with over a certain amount in transaction during a specific time period.”
What?
Yes. And the courts gave them the right to ask for the information.
However, it is the threat of what could happen to a crypto company if they do not or did not comply, that got the IRS what they wanted.
What the IRS wanted is to match U.S. IDs to U.S. tax records to see if taxpayers were reporting transactions.
