The Internal Revenue Service has recently expanded their agent capacity. This increase is designed to step up enforcement efforts across the country. Part of that effort is aimed at recouping losses in the crypto market. The federal government is well aware many crypto investors are failing to accurately report gains on their tax returns. Failing to report crypto transactions is a product of multiple converging realities: 1) the federal government’s lack of clear tax guidance, 2) the difficul nature of calculating true gains for many traders, and 3) the underlying belief by some investors the government cannot track their transaction history. To combat this problem, the federal government has put together a task force to isolate crypto investors with large gains in the market. This task force initiative has resulted in civil notice letters being sent to multiple crypto investors across the country. As the notices are being received, taxpayers are reaching out to both civil and criminal crypto tax attorneys for guidance on how to move forward.
For the last forty years, our firm has focused on representing both companies and individuals being investigated for, or charged with, various white collar crimes. Today, nearly 80% of our practice focuses on representing clients involved in criminal tax matters. These clients range from companies dealing with an ongoing IRS-CID (Criminal Investigation Division) investigation to individuals charged with criminal tax cases in federal courts across the country. Our criminal tax practice is large and expansive. We are one of the few firms nationally that handles criminal tax matters on a consistent basis.
Crypto Tax Attorneys | Criminal Defense
There are thousands of criminal defense attorneys in the United States. Most of them can adequately handle a DWI or basic felony charge in state courts. However, the pool of competent attorneys who can handle federal matters is much smaller. The group that focuses on criminal tax issues on a daily basis is even smaller still. When looking for competent counsel in the criminal tax arena, the choices are limited. It is imperative the client finds a good attorney from that pool to ensure a chance at success at the investigation or trial level.
Most of the firms competently handling criminal tax matters fit a similar profile. They have attorneys with their roots in the federal prosecution circles and decades of experience. Our firm certainly fits that bill. However, most of these firms do not have lawyers who understand crypto investing. Taxpayers who obtain income from the crypto space do so in a variety of ways; staking, mining, swapping tokens, buying/selling on decentralized and centralized exchanges, and participation in air drops. Each of these avenues can create a taxable event that must be declared on the client’s tax return. A successful defense requires a working knowledge of these systems and the guidance the IRS has put forward to date.
Our firm offers something few firms in the country can; a focus on criminal tax combined with the working knowledge required to analyze these transactions. Our attorneys have invested in crypto currencies, staked on POS chains, swapped tokens, and bought/sold various tokens on a variety of exchanges. Further, we have filed tax returns accounting for these transactions in line with IRS guidance. At our firm, there is no learning curve that takes place. We can step in and begin building your defense from the first consultation.
As the federal government ramps up criminal investigations into the crypto space, there will be a need for a firm that can competently represent these businesses and individuals under IRS scrutiny. Our firm offers something few can. Please contact us for a consultation at the first sign of IRS involvement.
Our attorneys have drafted numerous articles relating to criminal tax matters. The entire series can be found at the criminal tax page here. Below are articles from that series that address crypto taxation issues specifically: