Dealing With a Crypto IRS Issue? Why You Want an Enrolled Agent Who Understands the Technology

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The IRS is beginning to crack down on cryptocurrency users. There’s no need to panic just yet, but it would also be unwise to turn a blind eye to today’s increasingly urgent crypto taxation concerns. Whether you’re currently dealing with IRS drama or are simply looking to take a proactive approach to your tax situation, you’ll definitely want an enrolled agent in your corner. We explain the benefits of working with a professional below:

Crypto Is Not Quite Like Other Investments

While the taxable nature of crypto mimics that of other investments, a variety of elements set virtual currencies apart. Much of the confusion stems from the many ways in which virtual currencies can be used — and the reality that not all of these activities are taxable. Differing fair market values can prompt further confusion. An enrolled agent who understands the ins and outs of the modern crypto market can help you navigate these concerns to ensure that you report correctly on your investments, no matter how diverse or complicated your virtual portfolio may be. As the crypto market continues to evolve, an enrolled agent can keep you up to date on changing IRS guidelines or regulations — and adjust your investment and taxation strategy accordingly.

Understanding the Bigger Picture

If you’re like most taxpayers, crypto forms just one piece of a big picture that may include several other forms of taxable and non-taxable income. An enrolled agent can grant you valuable insight into how your crypto investments play into your full tax situation.

Who you work with as you deal with crypto-related IRS matters can determine whether you emerge with a positive outcome. Don’t let just anybody handle your virtual currency tax concerns; the Highland Tax Group is an ideal resource to have in your corner.