The Peck Group, LC
  • Comprehensive Tax Law Representation Since 1995

    We handle every aspect of tax law: preparing tax returns, representing clients during audits, resolving IRS and state tax controversies, and creating tax planning strategies for the future.

  • Problems With The IRS Or State Tax

    Our attorneys are committed to providing efficient and effective tax solutions for individuals and businesses in Georgia and nationwide.

  • Planning For The Future

    Our lawyers help individuals and businesses with all aspects of estate and tax planning. We help our clients use proactive strategies to minimize tax implications in the future

  • Changing The Balance Of Power

    Does it feel like the government has all the power? Taxpayers have rights, too. We use our knowledge of tax law to shift the balance of power and ensure that your rights are protected.

  • Tax Solutions … And Peace Of Mind

How to report payments and income in cryptocurrency

In a recent post, we reported on the results of a recent legal battle between the IRS and Coinbase—the results of which forced the cryptocurrency platform to release details about its users to the IRS. Income and assets through cryptocurrency have always been taxable, but the results of this case increase the likelihood that individuals dealing in cryptocurrency will be caught if they fail to report such assets.

If you’re paying in—or getting paid in—cryptocurrency, this post provides a basic overview of how to track and calculate your transactions for your tax return.

You’re an employer

If you’re an employer who pays your workforce in cryptocurrency, as with standard monetary payments, you are required to submit a W-2 form to the IRS. The amount you report on your W-2 must be in U.S. dollars. To calculate the value in U.S. dollars, you must figure the value of each cryptocurrency payment at the time you paid it. If you pay your employees weekly, this means you’ll have to make 52 separate conversions. For this reason, it’s important to track and convert each payment at the time you make it throughout the year.

You’re an employee

If you’re an employee who gets paid in cryptocurrency, you’ll receive a W-2 form, which your employer will have already converted into U.S. dollars for you. Claim the amount listed on your tax return as usual. No extra work is required on your part.

You’re self employed

If you’re self employed, you won’t receive a W-2 from an employer. Therefore, it’s your job to follow the tracking and conversion process described above, in order to accurately report your earnings as U.S. dollars.

Cryptocurrency offers many advantages, but it also creates extra complications come tax season. If you’re overwhelmed by the cryptocurrency reporting process, an experienced tax attorney can be a great asset in helping you prepare your tax return.

No Comments

Leave a comment
Comment Information
Email us for a Response

Talk to an Attorney

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

The Peck Group, LC
5855 Sandy Springs Circle N.E., Suite 190
Atlanta, GA 30328

Phone: 770-884-6914
Fax: 770-933-2369
Atlanta Office Location

Payment Cards