IRS Tax Audit For Bitcoin + Former IRS Agents, Bitcoin help

As the number and variety of cryptocurrencies on the market continue to grow, so does the scrutiny by government regulators.

The Internal Revenue Service has joined the mix by investigating the ways in which taxpayers  report virtual currency transaction .

Congress has gotten in on the action by amending the tax code to close a loophole that allowed cryptocurrency owners to exchange digital currencies without reporting the transaction on their tax returns.

As a result, IRS are coming, beware, stay clean.

For those who are making the decision to invest, what are the questions you should be asking?

Sample examinations for Investors Considering a Cryptocurrency or ICO
Investment

• Who exactly am I contracting with?

◦ Who is issuing and sponsoring the product, what are their backgrounds, and have they provided a full and complete description of the product?

Do they have a clear written business plan that I understand?

◦ Who is promoting or marketing the product, what are their backgrounds, and are they licensed to sell the product?

Have they been paid to promote the product?

◦ Where is the enterprise located?

• Where is my money going and what consultations it be used for?  Is my money going to be used to “cash out” other?

• What specific rights come with my investment?

• Are there financial statements?  If so, are they Audited, and by whom?

• Is there trading data?  If so, is there some way to verify it?

• How, when, and at what cost can I sell my investment?  For example, do I have a right to give the token or coin back to the company or to receive a refund?

Can I resell the coin or token, and if so, are there any limitations on my ability to resell?

• If a digital wallet is involved, what happens if I lose the key?

Will I still have access to my investment?

• If a block chain is used, is the block chain open and public?

Has the code been published, and has there been an independent cybersecurity Audit?

• Has the offer ing been structured to comply with the securities laws and, if not, what Implications will that have for the stability of the enterprise and the value of my investment?

• What legal protections may or may not be available in the event of fraud, a hack, malware, or a downturn in business prospects?

Who will be responsible for refunding my investment if something goes wrong?

• If I do have legal rights, can I effectively enforce them and will there be adequate funds to compensate me if my rights are violated?

If IRS is looking to undercover your asset through a tax Audit, call us today.