A Bitcoin Accountant for The Original Cryptocurrency
Bitcoin Tax Compliance and Reporting
As a Bitcoin Accountant, we deal with cryptocurrency compliance regularly. While the laws governing cryptocurrency are straightforward, the reporting requirements are onerous and requires expertise and proper software. We support several different tools for data extraction, and work with you to get your Bitcoin Accounting done right.
Bitcoin Mining creates additional complexity. The mining process generates revenue with the receipt of new coin, while the mining process also generates considerable expenses. Although only a minority of our cryptocurrency clients engaging in mining operations, those that do often have a mixture of domestic and international mining operations. As a firm with extensive experience in areas of international taxation, we are able to handle both the Web3 and foreign business components.
It would seem like the blockchain solves all reporting problems. However the United States taxation system is based on voluntary reporting and compliance, making it important that you are able to generate proper reports. While cryptocurrencies are as cash, it is treated as a non-cash asset by the IRS, requiring similar to treatment to a barter based business. Properly calculating gains and losses is extremely important, because as a non-security asset, wash rules do not apply. While pure Bitcoin enthusiasts may shut the other areas of Web3, many Bitcoin traders also at least dabble in other assets like NFTs or Web3 communities like DAOs.
The role of Bitcoin in the future of the economy is one of the most interesting questions of the 21st Century. While we believe that Bitcoin will play a substantial role in areas of international business in the years to come, our compliance system with the IRS right now requires working with antiquated rules that do not account for a world of instant mark to market transactions. If you have Bitcoin in your portfolio, we look forward to being your Bitcoin Accountant.