CRYPTOCURRENCY AND MICRO-CAPTIVE INVESTORS WILL BE AUDITED

The IRS recently released new guidance about virtual currency—the first in 5 years—which mainly dealt with whether taxpayers have gross income from two cryptocurrency events: hard forks of cryptocurrency the taxpayer owns and an airdrop of a new cryptocurrency following a hard fork, if the taxpayer receives units of new cryptocurrency. If you own virtual currency, no matter whether these terms sound like a foreign language to you or you are familiar with them, you may need to account for these events on your tax return for the year when they occur. The IRS statement said that taxpayers participating in micro-captive arrangements should "seriously consider" exiting the transaction and not claim deductions associated with abusive micro-captive transactions. The statement said the IRS will disallow tax benefits from transactions determined to be abusive and may also require domestic captive insurance companies to include premium payments in income and assess a withholding liability related to offshore captives. As a crypto or micro-captive investor, you face significant risks regarding taxation and the IRS. These risks can be mitigated, however, with help. Most accountants have no clue. Lance Wallach receives hundreds of calls for help. As an expert witness, Lance's side has never lost a lawsuit. Google him and your advisor. Who do YOU trust? 516-236-8440 Wallachinc@gmail.com