The Crypto Taxman is Coming. Should You Be Worried?

The IRS is going after crypto profits like never before

If crypto owners make a good effort to calculate and pay what they owe, they are unlikely to face serious consequences

April 18 is the deadline for filing taxes in the U.S., and, just like last year

This shows the Treasury Department now regards crypto taxation as an important source of income

Is the IRS up to the job? Even as the IRS move to process this year's tax returns, it still has a backlog or nearly 20 million filings from last year

The IRS's task is especially difficult when it comes to DeFi, where crypto traders have made enormous amounts of money

What happens if you're audited? While the IRS has made clear they expect people to pay tax on their crypto earnings, for many it won't be clear how much they owe.

Even the smallest crypto transaction can give rise to a capital gain obligation, while the cost basis for any profit may not be obvious

But even relying on these specialty services doesn't guarantee a crypto owner will calculate what the IRS believes is owed