Don Farmer's Cryptocurrency Taxation: Tracking, Reporting & IRS Enforcement
2.00 Credits
Member Price $89
Non-Member Price $109
Overview
As IRS scrutiny of digital assets intensifies, CPAs must stay current on cryptocurrency taxation and reporting requirements. This focused 2-hour course provides a practical update on the federal income tax treatment of cryptocurrency transactions, emerging reporting rules, and current IRS enforcement initiatives.
Participants will review the tax implications of common digital asset transactions, including sales, exchanges, mining, staking, hard forks, and airdrops. The program emphasizes reporting requirements, including the Form 1040 digital asset question, Form 8949 reporting, and new broker reporting developments such as Form 1099-DA. Special attention is given to audit risk factors, documentation standards, and practitioner responsibilities in an evolving regulatory environment.
This session is designed to equip tax professionals with the tools needed to ensure compliance and confidently advise clients in today’s increasingly regulated digital asset landscape.
Highlights
Federal Tax Treatment of Digital Assets
- IRS classification of cryptocurrency as property
- Tax consequences of sales and exchanges
- Mining and staking income
- Hard forks and airdrops
Reporting Requirements and Compliance
- Form 1040 digital asset disclosure
- Form 8949 and Schedule D reporting
- Schedule C considerations
- Overview of broker reporting rules and Form 1099-DA developments
IRS Enforcement Trends
- Exchange reporting and John Doe summonses
- IRS compliance campaigns
- Civil penalties and potential criminal exposure
- Audit risk indicators
Practitioner Considerations
- Documentation and substantiation best practices
- Client interview strategies
- Ethical responsibilities in digital asset reporting
Prerequisites
None
Designed For
CPAs and tax professionals involved in the world of tax.
Objectives
- Identify the federal income tax treatment of common cryptocurrency transactions under current IRS guidance.
- Determine appropriate reporting requirements for individuals and businesses engaging in digital asset activities.
- Recognize key IRS enforcement trends and audit risk factors related to cryptocurrency transactions.
- Apply practical compliance and documentation strategies to mitigate reporting risks.
Preparation
None
Leader(s):
Leader Bios
Nicholas Preusch
Nicholas Preusch, CPA, JD, LLM, is a tax manager with PBMares, LLP, in Fredericksburg, VA, where he works with high wealth individuals and mid- to large-size companies focusing on tax controversy and complex tax issues. In addition, Nicholas is an adjunct professor at the University of Mary Washington. Nicholas has been published in the AICPA’s Journal of Accountancy and Tax Adviser, and in CCH’s Journal of Tax Practice and Procedure. He co-authored the textbook Tax Preparer Penalties and Circular 230 Enforcement, published by Thomson Reuters. Nicholas was named one of the VSCPA’s Top 5 Under 35 in 2017. Prior to joining private practice, Nicholas started his career as an IRS Revenue Agent. He later joined the IRS Office of Professional Responsibility as an enforcement attorney. While at OPR, he was the lead attorney on several milestone cases such as Gass and Pezzo. Nicholas is a graduate of Carthage College, degree in Accounting and Business; he has also earned a Master of Science in Accounting from the University of Connecticut, his JD from Case Western Reserve University, and his LLM in Taxation from Georgetown University.
Non-Member Price $109
Member Price $89