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Yahoo
12-07-2025
- Business
- Yahoo
3 Things To Do if You Got an IRS Warning Letter About Your Crypto Activity
If you're a cryptocurrency investor, you might soon hear from Uncle Sam in the form of an IRS letter detailing your tax obligations. Read Next: Find Out: The letters are designed to warn taxpayers that crypto investments they declared on their most recent tax returns might not be accurate, Fortune reported — and there are a lot more of those letters being issued. In May and June alone, the number of support conversations on crypto tax platform CoinLedger that included the words 'IRS letters' totaled nearly 800. That represented a nine-fold increase compared to the same period in 2024, CoinLedger CEO David Kemmerer told Fortune. 'Thousands of investors are getting these,' Kemmerer said. 'Naturally, when that happens, we get a flood of customers coming to us being like, 'Hey, what do I do?'' The letters come in three basic forms, according to a recent blog from Corrigan Krause, an Ohio-based tax, accounting and consulting firm. One of them, titled letter 6173, is sent when the IRS believes you didn't meet your U.S. tax filing and reporting requirements for virtual currency transactions. The others — letters 6174 and 6174-A — are sent when the IRS believes you have or have had 'one or more accounts containing virtual currency' but might not know the reporting requirements, Corrigan Krause noted. You don't have to respond to a letter 6174 or 6174-A. However, you should check your form 1040 filing to determine if it needs to be amended. You should also keep an eye out for further IRS correspondence. If you receive a letter 6173, you are required to act. Depending on the situation, here are three things you might need to do if you get a letter 6173, according to Corrigan Krause. If you failed to file one or more income tax returns, you'll need to file delinquent returns and report your crypto transactions as soon as possible. If you made a mistake on your income tax return, such as not reporting your crypto transactions or incorrectly calculating your income, gain or loss, then you should file an amended return as soon as possible. If you think you met all your reporting requirements and have received a letter 6173 in error, you'll need to follow certain steps. First, check the top of the letter to find an address and eFax number that you'll need to send the following documentation to: Your contact information. A 'statement of facts' explaining your position. This should include a full history of previously reported income from your crypto transactions as well as an explanation of the actions you took to become compliant with U.S. reporting requirements. Provide copies of previously filed documents that confirm your compliance. Your signed and dated letter 6173 section stating that you, under penalties of perjury, are sending the IRS documents proving you are compliant with U.S. reporting requirements. More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard 3 Reasons Retired Boomers Shouldn't Give Their Kids a Living Inheritance (And 2 Reasons They Should) These Cars May Seem Expensive, but They Rarely Need Repairs This article originally appeared on 3 Things To Do if You Got an IRS Warning Letter About Your Crypto Activity
Yahoo
29-06-2025
- Business
- Yahoo
Bitcoin and crypto investors hit with flood of IRS letters, say tax experts
Crypto investors are poised for record returns on Bitcoin and other digital assets—and so, too, is the taxman. The Internal Revenue Service has sent U.S. crypto investors a flood of warning letters about their digital asset investments over the past two months. The volume of letters—which warn taxpayers that crypto investments they declared on their recent tax returns may not be accurate—are an increase over the past year, according to three crypto tax experts. CoinLedger, a crypto tax platform, has seen a spike in users asking about the government communiqués. The number of support conversations on CoinLedger that included the words 'IRS letters' from May through June numbered close to 800, a ninefold increase compared to the same period in 2024, David Kemmerer, cofounder and CEO of the tax website, told Fortune. 'Thousands of investors are getting these,' he claimed. 'Naturally, when that happens, we get a flood of customers coming to us being like, 'Hey, what do I do?'' Two crypto tax attorneys have also noticed an uptick in inquiries about the letters. At least 10 recipients have reached out to his firm over the past two months, said Jordan Bass, a crypto tax attorney and accountant. That's compared to no inquiries sent to his office in 2024. Andrew Gordon, another attorney who specializes in crypto tax law, also said he's seen an increase. 'We're getting at least a couple calls a week,' he said. The three crypto tax experts said they haven't seen such an uptick in crypto inquiries from the IRS since the tax agency sent out a flood of letters in 2020 and 2021. In 2017, the IRS obtained thousands of customer records from the U.S. crypto exchange Coinbase as the result of a court order. Two years later, the tax agency devised a set of crypto-specific 'voluntary compliance' letters that it then sent out to investors. The notices tell crypto owners that the IRS has information that the recipients had 'one or more accounts containing virtual currency.' In two versions off the letters, the tax agency merely advises investors to check to see if they've correctly reported their crypto transactions to the IRS. Recipients are not required to respond. But in the case of a third type of IRS letter, recipients are instructed to respond to the IRS with either new tax returns, amended tax returns, or an explanation of why recipients believe they've correctly reported their crypto transactions to the U.S. government. The CoinLedger CEO and the two crypto tax attorneys did not know why more investors have reached out to them about IRS letters in 2025 as opposed to years prior. Gordon, one of the tax attorneys, noticed that a common factor linking recent recipients were that they had accounts on the crypto exchange Poloniex. Kemmerer, the CEO of CoinLedger, echoed Gordon and said that increased IRS outreach to crypto investors 'typically follows when the IRS has gotten their hands on some amount of data.' The IRS did not immediately respond to a request for comment. 'I'm sure there's just people randomly getting selected, and the lucky ones get these scary letters,' added Kemmerer. This story was originally featured on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Mayor
18-05-2025
- Business
- Business Mayor
Two Pizzas Bought With Bitcoin In 2010 Would Be Worth $815 Million Today
The most expensive pizza ever in the history of people eating pizza was bought on an ordinary day in May 2010 by a Jacksonville, Florida, man. Today, a single slice of that pizza is worth millions. But at the time, both pizzas together were worth just $41. The purchase was part of a publicity stunt planned by Laszlo Hanyecz, who had decided to order the pizza using this brand-new digital currency called bitcoin. As was common at that time, Hanyecz posted his idea rather informally in an online forum with other bitcoiners. He recalls that post going something like this in various news media articles: 'You know, if anybody's interested, I'm offering 10,000 bitcoins in exchange for some pizza.' Before too long, someone named Jeremy Sturdivant, who hails from England, decided to take Hanyecz up on the offer. Once he received Hanyecz's bitcoins, Sturdivant used a conventional credit card to order and pay for the pizza from a Papa John's in Jacksonville, Florida, where it was delivered right to Hanyecz' doorstep. Hanyecz, who was hoping to raise awareness of bitcoin, then sent out press releases about the stunt to media outlets across the country, including a little newsroom in Park Hills, Missouri, where this reporter worked at the time. The press release went largely ignored. It was an event that took place in Florida with no obvious local angle in Missouri, using something obscure no one had yet heard of. It went straight to File 13, never to be seen again. But three years later, that little pizza purchase was worth astronomically more than $41. It was worth around $750 million in 2013. Heck, even in the bear market of 2023, the pizza purchase was still worth $268 million. The value has just continued to rocket up, and Hanyecz is frequently called upon to recall his pizza stunt on May 22, which has become known as Bitcoin Pizza Day. In today's dollars, the pizza purchase is worth a cool $814,464,800, according to CoinLedger , which offers accounting services for cryptocurrencies. The Alibi Wood Fire Pizzeria is a local favorite watering hole famous for its pizza in Laramie, Wyoming. (The Alibi via Facebook) Most Expensive Crypto Purchase Ever Those pizzas aren't even the most expensive item ever purchased with bitcoin, though. That honor goes to a Trump SoHo condo hotel worth $2.08 billion in 2024. Today known as The Dominick, the 46-story condo hotel was listed for sale in 2013 with a stipulation that the purchase had to be 100% bitcoin. The transaction, when it finally occurred, was for 25,500 bitcoin (BTC) which had a value of about $2 million at the time. Today, however, those same bitcoins are worth $2.67 billion, making it the most expensive bitcoin purchase on record, according to CoinLedger. It's quite possible that there are other eye-poppingly expensive transactions that no one really knows about. That's because in the early days of bitcoin, people were just trying to use the digital currency, exploring how it worked for one, and trying to make sure it remained viable for another. Among those who recalls that time is Wyoming's Caitlin Long, today the CEO of Custodia Bank, which handles digital assets like bitcoin and has pioneered a financial runway that can transfer bitcoin to digital and/or physical U.S. dollars and back to bitcoin again. 'Every year on Bitcoin Pizza Day they always ask (Hanyecz) for a comment about that because those pizzas are worth almost a billion dollars now,' Long said. 'And he has the same approach to it that I do. You can't look at it that way. The network wouldn't be where it is today if somebody hadn't started using bitcoins in transactions like that one.' Ultimately, it is a measure of just how far Bitcoin has come since it was invented in 2008 and a quietly registered domain appeared called followed up with a little white paper on Bitcoin in 2009, which was distributed to a little-known crypto mailing list by one Satoshi Nakamoto. The name is thought to have been an alias, and the person or people behind it have yet to be identified. Nakamoto disappeared in the spring of 2011, with billions, and not a whisper has been heard since. Lots of people have put forward theories on who he or she or they might have been, but the mystery today remains unsolved. Bitcoin Trades Helped It Become What It Is Today Long was just getting started with Bitcoin in 2012, but she had her own sort of pizza pie moment in 2014. 'I saw that was the first big brand-name business getting involved with bitcoin,' she recalled. 'So, I wanted to support them, and, back then, everyone was trying to figure out — because Mount Gox had just failed — whether bitcoin was going to survive.' Mount Gox was a Tokyo-based exchange that handled about 70% of bitcoin trades at the time. They failed after hackers broke in and stole thousands of bitcoins. Long, like a lot of bitcoiners at the time, was looking for ways to help this new cryptocurrency platform survive what had been cast at the time as a catastrophic failure for cryptocurrencies. So, she decided to buy Christmas gifts with some of her bitcoin that year. With a single bitcoin trading around $320 at the time, a $640 purchase would be 2 bitcoins. Today that's worth around $208,000. 'I like don't want to even think about it, but that's the point is, you can't look at it that way,' she said. 'It's almost the same thing as donating appreciated bitcoin in 2017 to fund the endowment for female engineers. Had I waited, I could have funded more endowment today, but there were many students who benefitted from that money by me funding it in 2017. And that was also part of making bitcoin what it is today. If nobody ever used it, you would never get the network effects.' Those network effects make Bitcoin resilient today, Long believes. It's like the Internet. There are enough different distribution points that it can no longer be shut down by a single state actor. It would take a concerted effort, and even then, Long doesn't believe it would succeed. That decentralization was part of the point behind the whole system. The endowment fund Long wanted to contribute bitcoin to is what spurred her involvement in Wyoming's digital asset laws. She was unable to make her donation at the time without legislative changes. Caitlin Long (Matt Idler for Cowboy State Daily) Here To Stay? Despite Long's pragmatic view, however, even she confesses to occasionally wishing, just a little bit, that she'd put a little more money into bitcoin at the time. 'We'd all be rich,' she says, laughing. One reason Long didn't put more money into it at the time is the same reason a lot of financial investors have long advised giving cryptocurrency a pass. Long remembers losing some of her coins when Mount Gox failed in 2014. 'I got some of the money back 10 years later,' Long said. 'But it was a fraction of the bitcoins I'd bought.' Cheyenne-based financial advisor Bryan Pedersen also remembers the Wild West days of bitcoin, when it was first starting out. 'In 2011, I had a very good friend of mine who, today is a partner at a major nationwide accounting firm,' he told Cowboy State Daily. 'And I asked him at the time what he was doing and he goes, 'Oh I'm mining this coin off the internet.'' Read More EOS Falls 10.16% In Bearish Trade Pedersen couldn't believe his ears at the time. 'I was like, 'What are you doing, you Dungeons and Dragons nerd?'' Pedersen recalls saying. 'Are you going to get this fake coin off the internet to buy like a shield for your wizard in Dungeons and Dragons?'' But today, Pedersen's friend has a few million dollars from his bitcoin mining days. 'I guess we all could have, should have, would have, but remember, there's so many cryptos that have collapsed,' Pedersen said. 'And if you picked the wrong one, you got zero.' Pedersen isn't quite as negative about bitcoin and other cryptocurrencies as he was then. 'I do think there's a place for crypto in the future,' he said. 'I'm not negative on it like was in 2011, when I just didn't understand it. But I don't know how that comes to fruition and whether it's government-controlled or it's free market or whatever the case may be.' But he has also watched as BRICS countries — Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Indonesia, Iran and the United Arab Emirates — have pushed to find a non-dollar denominated security to trade with. 'We tell the whole world they have to trade with U.S. dollars, and then we just print more of them,' Pedersen said. 'So, we devalue our dollar but still tell the rest of the world that they have to trade with it.' The move toward crypto is something Pedersen believes is in response to that devaluing and has become something of a new economic arms race. 'If the new game is crypto, we need to own it,' Pedersen said. 'So that we're still the world leader because the U.S.'s largest export is the dollar … It makes the world banking system. So, if the world switches to any type of cryptocurrency, whether that's led by BRICS nations or us, we still need to have a say. And that's what owning a sovereign crypto company would do.' That's the reason Pedersen believes cryptocurrencies are here to stay, whether it's Bitcoin, or some other system. Renée Jean can be reached at renee@
Yahoo
05-05-2025
- Business
- Yahoo
I'm a Tax Accountant: Here Are the 5 Best Ways To Get an Extra $2K Back Next Year
Getting a bigger tax refund should be at the top of everyone's to-do list, even if that means preparing well before the next tax season. So, even though Tax Day has come and gone in 2025, tax year 2025 should be next on your list to get the most out of what you both pay and get back. Discover More: Find Out: Taxes can be confusing and overwhelming, and it can be hard to figure out what you can do today to affect your return in a meaningful way. With tax law changes happening each year, it's best to consult with a licensed professional to make sure you're maximizing your tax return and paying the least amount possible to the IRS. Miles Brooks, a CPA and the director of tax strategy at CoinLedger, reveals his top five ways to significantly increase your tax return near year. Tax credits help reduce the tax you owe for the year, dollar for dollar. Finding as many tax credits as you qualify for can help significantly increase the amount of money you get back. 'Tax credits can reduce the tax you owe and, thus, increase your tax refund,' Brooks said. 'Different tax credits allow you to deduct a certain amount from your tax bill. For example, if you owe the IRS $7,000 in taxes and have tax credits amounting to $1,000, then your tax bill will be $6,000. You might refund some tax credits if you don't have outstanding tax debt.' While some tax credits are nonrefundable (meaning they won't give you a bigger refund), some qualify as refundable. Tax credits such as the EITC or child tax credit have refundable amounts, which can increase your refund by thousands of dollars when claimed. Read Next: There are several different tax filing statuses, but not many taxpayers know that claiming a different status can increase their return. 'If you are married, see if filing as a married or single person offers more advantages,' Brooks said. You can change your filing status, even if it doesn't describe your exact situation. Keep in mind that you should be careful with this, as there can also be unintended tax liabilities or consequences. Tax filing status also changes with life events. 'If you lost your husband or wife, you could file as a widow or widower if your spouse died more than two years ago,' Brooks said. 'The status you choose when filing will affect your deduction.' Divorce also has an impact on your status. For example, if you are divorced but retain custody of your children, filing as head of household can increase your standard deduction to $21,900 vs. the $14,600 deduction for single filers. Depending on your tax rate, this can net you thousands of dollars more. Itemizing your deduction may be able to give you a bigger refund. Itemizing is claiming deductions for qualifying expenses paid throughout the year. The expenses include things like property taxes, private mortgage insurance, student loan interest paid, state and local sales tax, and charitable donations. 'Most people do not bother to itemize their deductions,' Brooks said. 'However, you can improve your refund by itemizing deductions. If itemizing does not apply for this year, it can work in the future.' While the standard deduction for a single filer is $15,000 in 2025, if you had more than that amount in expenses, you should itemize your deductions. This will net you a lower tax burden and (potentially) a bigger refund. Did you lose any money last year? Maybe some crypto investing didn't pan out? You can use those losses to lower your taxes for the year. Brooks said, 'If you have an investment that brought about a loss or a bad debt, you can describe it and deduct it. You must, however, describe how you put your efforts into the investment and share how it made losses or why the bad debt is worthless.' In addition to poor investments, if you had any money or assets stolen from you, you can deduct the value of those as well. One of the best ways to lower your tax burden and increase your refund (and your wealth) is to invest. But don't just invest in any brokerage account; focus on tax-deductible retirement accounts. Brooks said one of the best ways to do this is by 'maximizing your 401(k) by the end of the year… will help maximize your tax refund.' In addition to your 401(k) account at work, consider maxing out a traditional IRA account. This is another tax-deductible retirement account that allows you to remove the contributions from your income for the year. As of 2025, you can contribute up to $23,500 if you're under 50. If you're over age 50, you can contribute an additional $7,500 in catch-up contributions, or $7,000 into a traditional IRA (or $8,000 if age 50 or older). That is $31,000 in deductions you can add to your tax return that could result in thousands of dollars back in your pocket. Not to mention efficiently growing your retirement account. The bottom line is that tax returns can be stressful, but if you focus on maximizing your return using these strategies, you could easily increase your refund by $2,000 (or more). It's important to understand what tax deductions and credits you qualify for and how you can increase your refund with a few simple moves. With the ever-changing landscape of U.S. taxes, it is wise to hire a licensed tax professional to help you stay in compliance while potentially increasing your refund for next year. Caitlyn Moorhead contributed to the reporting for this article. More From GOBankingRates 5 Luxury Cars That Will Have Massive Price Drops in Spring 2025 4 Things You Should Do if You Want To Retire Early How Far $750K Plus Social Security Goes in Retirement in Every US Region 12 SUVs With the Most Reliable Engines Sources Miles Brooks, CoinLedger This article originally appeared on I'm a Tax Accountant: Here Are the 5 Best Ways To Get an Extra $2K Back Next Year Sign in to access your portfolio
Forbes
30-04-2025
- Business
- Forbes
5 Of The Best Crypto Apps To Check Out In 2025
Whether you're just getting started or looking to streamline your portfolio and tax reporting, the ... More top crypto apps of 2025 offer secure, user-friendly solutions across every stage of the journey. Navigating the crypto world in 2025 requires more than just curiosity. Whether buying your first Bitcoin, tracking your portfolio or exploring decentralized finance, the right app can make all the difference. With the digital asset space expanding rapidly, choosing the best platforms is key to staying informed and secure. This guide highlights the best crypto apps worth checking out in 2025. From trading platforms to wallets, earn tools, and tax solutions, you'll learn what each app offers, who it is best suited for, and how it fits into today's evolving crypto ecosystem. As the crypto landscape matures, a handful of standout apps continue to lead the way in accessibility, security and innovation. Whether you're a beginner looking for a user-friendly interface or a seasoned investor seeking better portfolio management, these platforms offer something for everyone. Gemini and Coinbase are known for their intuitive design and regulatory compliance, while CoinLedger helps users simplify crypto tax reporting. Zengo opens the door to the world of self-custody in cryptocurrency, and Fidelity brings traditional finance credibility to crypto investing. The following section explores what makes each app a top choice in 2025. Gemini is a highly trusted crypto platform built with a security-first mindset, making it a reliable choice for both individuals and institutions. Regulated by the New York State Department of Financial Services and registered with FinCEN, Gemini upholds some of the strictest standards in the industry. It holds multiple U.S. and international licenses and is the first crypto exchange and custodian to achieve both SOC 1 Type 2 and SOC 2 Type 2 certifications, underscoring its commitment to transparency and compliance. With its clean, user-friendly interface and rigorous security protocols, Gemini is ideal for those who want a safe and straightforward way to enter the world of digital assets. It offers crypto trading, secure storage, and educational resources for new users. What is this app best for? Best suited for beginner crypto investors seeking a secure, user-friendly platform to start trading and managing digital assets. Where can you download this app? Available on iOS, Android, and at Coinbase is the largest and most well-known cryptocurrency exchange in the United States, offering a streamlined experience for users looking to buy, sell or hold digital assets. Founded in 2012 when Bitcoin was still a niche experiment, Coinbase has grown into a publicly traded company with a strong reputation for compliance and innovation. It offers a wide selection of cryptocurrencies and intuitive design that makes crypto investing accessible to users at all levels. Beyond its ease of use, Coinbase is also known for its proactive security measures, including close collaboration with law enforcement to help prevent fraud and protect users in real time. With 13 years of experience, it remains a trusted entry point into the world of digital assets. What is this app best for? Great for investors looking to explore and trade a broad range of cryptocurrencies on a trusted, easy-to-use platform. Where can you download this app? Available on iOS, Android, and at CoinTracker is a comprehensive crypto portfolio and tax tracking app trusted by users around the world. It automatically syncs with thousands of exchanges and wallets, giving you a unified view of your crypto balances, transaction history, and performance over time. With its ingenious tax engine, CoinTracker categorizes DeFi activity, filters out spam and calculates capital gains and losses with precision helping you save time and reduce errors when filing with TurboTax, H&R Block or your accountant. Designed for accuracy and ease, CoinTracker uses read-only wallet access, end-to-end encryption and token-based two-factor authentication to keep your data safe. It also offers personalized insights, tax-loss harvesting tools and an up-to-date 2025 Crypto Tax Guide to simplify your tax season from start to finish. What is this app best for? Ideal for crypto users who manage multiple assets and want to simplify accurate tax reporting. Where can you download this app? Available on iOS, Android, and at Zengo is a multichain, self-custodial crypto wallet designed for users who want maximum security without the complexity of seed phrases. Instead of relying on a single private key, Zengo uses multiparty computation, a cryptographic approach that eliminates the single point of failure common in traditional wallets. This technology enables secure key management by allowing different devices to jointly approve transactions without ever generating or sharing a private key. Since its launch in 2018, Zengo has maintained a flawless security record, with no wallets compromised. In addition to MPC-based security, Zengo offers features like three-factor recovery, a Web3 Firewall that protects users from malicious dApps, and Legacy Transfer, which helps users pass on assets securely. It is a top choice for anyone seeking a secure, user-friendly self-custody wallet. What is this app best for? Zengo positions itself as one of the most secure self-custodial wallets available, offering advanced protection without compromising ease of use. Where can you download this app? Available on iOS and at Fidelity Crypto brings the trust and reputation of one of America's most established financial institutions into the world of digital assets. Designed with education and clarity in mind, the app helps users confidently navigate crypto investing through accessible resources and straightforward tools. With the ability to buy and sell Bitcoin, Ethereum and Litecoin directly within the same app used for stock trading, Fidelity makes it easy for traditional investors to explore crypto without leaving a familiar ecosystem. Since 2014, Fidelity has been a quiet innovator in the space, and Fidelity Crypto reflects that experience with a clean interface, strong security measures and a commitment to long-term adoption. It's a strong entry point for anyone curious about crypto's place in the modern portfolio. What is this app best for? Best app geared for beginner-level Bitcoin, Ethereum and Litecoin investors. Where can you download this app? Available on iOS, Android, and at Bottom Line In today's fast-moving web3 environment, having the right tools can make all the difference. Whether you're just getting started or looking to streamline your portfolio and tax reporting, the top crypto apps of 2025 offer secure, user-friendly solutions across every stage of the journey. From trading and custody to education and tax prep, each app featured brings something unique to the table. Gemini and Fidelity provide trusted, beginner-friendly platforms backed by institutional security. Coinbase stands out for its broad coin selection and ease of use, while CoinLedger simplifies crypto tax reporting. Zengo redefines wallet security with innovative MPC technology. Whether you're investing, learning, or securing your assets, these apps offer reliable pathways to participate in the evolving world of digital finance. No, you can't trade all cryptocurrencies on every crypto app. Each platform supports a different selection of assets based on factors like regulatory approval, security standards and market demand. Yes, some crypto apps offer zero-fee trading, but these often come with trade-offs such as wider spreads or limited features. It's important to read the fine print, as "zero fees" doesn't always mean you're getting the best overall value. Apps like Coinbase and Gemini offer popular staking features for earning passive income on assets like Ethereum and Solana. However, the best option depends on your goals, asset preferences and whether you prioritize ease of use, decentralization or higher yields. To secure your crypto assets on mobile apps, use platforms with strong security features like two-factor authentication, biometric logins and encrypted wallets.
