What Are Cryptocurrency Tax Services?
Cryptocurrency tax services present assistance in calculating and reporting as well as filing taxes on the digital asset activity — so your tax return fully satisfies IRS rules from the start.
For US taxpayers, crypto transactions are treated as property events in general. In other words, buying and selling or swapping and getting paid in digital assets can create taxable income — or capital gains. A focused approach to crypto taxation looks at every wallet and exchange with blockchain used — and turns messy data into a clear tax picture.
Specialized cryptocurrency tax filing services can be summarized as below:
- Collecting records from exchanges and wallets as well as DeFi platforms
- Converting every trade and transfer into U.S. dollar values
- Calculating gains & losses and income across the tax year
- Preparing relevant forms like Form 8949 and Schedule D
- Coordinating crypto numbers with the rest of the return
Which Crypto Activities Are Taxable?
Crypto taxes apply to many different everyday actions —- not just selling Bitcoin. We present a simple guide to general transactions and IRS treatment to them below:
| Crypto activity | Typical tax treatment |
|---|---|
| Buying with cash and holding | Generally not taxable at purchase |
| Selling for cash | Capital gain or loss |
| Swapping one coin for another | Capital gain or loss on the asset given |
| Getting paid in crypto | Ordinary income at fair market value |
| Staking or yield rewards | Ordinary income when received |
| Mining payouts | Ordinary income — may be business income |
| Airdrops or promotional tokens | Ordinary income in many situations |
Who Should Consider Cryptocurrency Tax Services?
You should think about professional cryptocurrency tax services if any of the below scenarios apply:
- Trading on more than one exchange — or using multiple wallets
- Holding NFTs, running a node or using DeFi lending or liquidity pools
- Receiving airdrops and bonuses or referral rewards in tokens
- Experiencing new platforms and not tracking the cost basis
- Not reporting all crypto transactions in a past year
The more places you move assets, the harder it becomes to keep a complete record. A specialist in crypto taxation can clean up the history — and naturally lower the risk of notices or questions from the IRS.
What Problems Can Cryptocurrency Tax Services Help You Solve?
A focused approach to cryptocurrency tax services can simply address issues that basic tax software generally misses. The Tax and Accounting Group can present assistance with the below situations:
Missed reporting prior year trades
We can prepare amended returns when earlier activity was not included.
Used many platforms and lost track of records
We work to reconcile cross-exchange trading and wallet transfers as well as DeFi positions — so there are no unexplained gaps.
Experienced hacks and fraud or rug pulls
We review whether the loss may be treated as a capital event — or another type of deduction and present how it affects the overall result.
Hold NFTs and gaming tokens or creator royalties
We classify each stream as income or capital — and report it in the correct place on the return.
Own a business that accepts crypto
We coordinate digital asset payments with your bookkeeping — so revenue and basis are tracked from day one.
Each of the abovementioned situations calls for more than a simple total of trades — which is where cryptocurrency tax filing services make a real difference.
The Tax and Accounting Group for Crypto Taxation
The Tax and Accounting Group is a US tax and CPA firm that brings traditional accounting discipline to web3 activity.
When you work with us on crypto taxation, you receive:
- A single view of all your digital asset activities for the year
- Careful documentation that supports the numbers on the tax return
- Clear explanations in plain language — so you know what was filed
- Coordination between your crypto positions and the rest of your tax picture
Our primary focus is on giving our clients confidence that their reporting is thorough and filed on time — so they can dedicate their time to investing and building — instead of worrying about forms. Reach out to us today for dedicated services.
FAQs
How are crypto taxes calculated?
Crypto taxes are generally calculated by taking the sales price minus the cost basis for each transaction — then separating short term and long term results — and adding any crypto income you earned.
Do I need cryptocurrency tax services if I only made a few trades?
Yes, even a small number of trades can create taxable events. And professional cryptocurrency tax services present aid in making sure that nothing is missed — and the return fully lines up with IRS expectations.
What happens if I did not report crypto in previous years?
If you skipped earlier activity — amended returns can generally correct the issue. And early action generally looks better than waiting for the IRS to contact you about crypto taxes.
Can cryptocurrency tax preparation help with DeFi and NFTs?
Specialized cryptocurrency tax preparation can handle lending or liquidity pools and staking with NFT activity by classifying each movement as income — or capital and reporting it properly.
When should I contact a firm about cryptocurrency tax filing services?
It is best to reach out for cryptocurrency tax filing services as soon as you receive year-end statements or 1099 forms — so there is enough time to gather records and perform the filing process without rush.