Why Crypto Traders Are Low-Hanging Fruit for the IRS

Understand how the IRS will pursue crypto traders and how you can protect yourself.

Or scroll below to learn more.

crypto traders

More About This Ebook

In this ebook, I explore how the IRS compliance campaign works, which is opposite to what most traders thought.

As the title of the book indicates, most crypto traders are low-hanging fruit for the IRS. But it doesn’t have to be that way for you. 

Instead of being paralyzed with fear of the IRS, get this book, get informed, and build your plan to rescue yourself from the IRS. Get your ‘fruit’ to the top of the tree!

The Price Value of this Ebook

My passion is to help as many traders as fast as possible.

This book can help you properly file a correct crypto tax return, which can save you over $10,000 in penalties.

That’s how valuable this book is to you.

The Story Behind this Ebook

Let me tell you a quick story about how I wrote this book.

I had just finished writing my book 10 Steps For a Great Crypto Tax Return, which explain my best secrets for preparing a tax return for crypto traders.

I wanted to convince traders just how important doing a great tax return was. So I started to write a series of email letters.

I was fascinated by a quote from the IRS Commissioner who said in November 2018, “You think the IRS doesn’t know [who the crypto traders are]? The IRS will have more information about them than you can possibly imagine.”

All the traders I was talking to thought the IRS didn’t know about their trading activity. This was one reason why so many didn’t report their income in 2017. If the commissioner was being honest, then most crypto traders were in great danger.

So I tried to imagine how the IRS could know so much about traders.

Then I heard a quote from the U.S. Treasury Secretary David Mnuchin who said, “Bad actors were using cryptocurrencies to destabilize the U.S. monetary system”. A national security threat that grave could be the pretense to justify outrageous actions by the government.

A national security threat means that the National Security Agency (NSA) would be involved. Most of what we know about the NSA we learned from Edward Snowden.

By studying what Snowden disclosed, I discovered shocking information that should make every crypto trader worried.

As I started to write the material in these emails, they kept getting longer and longer with footnotes and juicy insights. These insights were too important to hide in emails. So, I converted each email into a chapter and made my third book, Why Crypto Traders Are Low-Hanging Fruit For The IRS.

What's In This Ebook

  • Wealthy People Don’t Hide
  • Don’t Panic
  • What can you do?
  • Why is the IRS cracking down on who American crypto traders are? 
  • How does the IRS know who the crypto traders are? 
  • How will the IRS compliance campaign happen? 
  • Must crypto traders submit anti-money laundering reports? 
  • Can past returns be corrected to protect against the IRS compliance campaign? 
  • Why hasn’t the IRS begun the crackdown yet? 
  • What if I would owe the IRS more money than I have? 
  • Footnotes 
  • What the NSA Knows 
  • How does the NSA know about crypto traders? 
  • No More Hiding 
  • Footnotes
  • Blame it all on Ronald Reagan. 
  • Are you behaving like a criminal? 
  • IRS prefers assessments instead of audits. 
  • Why do crypto traders have to report? 
  • Who is the counterparty? 
  • Better to Over-Report 
  • 40% Penalty 
  • Don’t Submit the Report Late 
  • Almost No One Filed This Information Return 
  • Footnotes
  • Largest compliance campaign ever? 
  • How I Would Run the Enforcement Campaign 
  • Identify the Traders 
  • Determine the Heavy Traders 
  • Which heavy traders didn’t report the money laundering information return? 
  • Hire Contractors 
  • Require Information from Taxpayers 
  • Assess FBAR Penalties 
  • Updated Capital Gains Taxed 
  • Massive Penalties with Little Effort 
  • Action is Needed 
  • Footnotes
  • The work still continues into 2019. 
  • Footnotes
  • Lessons Learned 
  • Footnotes
  • Six Years
  • Wait or Fix? 
  • Footnotes
  • Minimum Filing Thresholds 
  • What is FinCEN 114 FBAR? 
  • What does the law say about reporting? 
  • Beware of Spurious Blogger Remarks 
  • What is the FBAR filing threshold? 
  • FBAR penalties are high. 
  • I didn’t have $10,000 in foreign crypto exchanges. Do I have to file an FBAR?
  • Unacceptable Excuses 
  • No Downside to Overreporting 
  • Footnotes
  • Penalties for Not Filing 
  • Difficulties for Crypto Traders Filing Form 8938 
  • No Downside to Overreporting 
  • What must be reported on Form 8938? 
  • What is a specified foreign financial asset? 
  • What is the minimum filing threshold? 
  • Special Rule for Married Specified Individuals Filing a Joint Annual Return
  • Special Rule for Certain Specified Individuals Living Abroad
  • Special Rule for Married Individuals Living Overseas 
  • Do I have to file a Form 8938 if I didn’t own more than $50,000 in cryptos?
  • Footnotes
  • Have you made a mistake, or are you in trouble with the IRS already?
  • Have you made a mistake? 
  • Do I need tax amnesty? 
  • What tax amnesty programs are available? 
  • Do I have to correct my tax return? 
  • What if you owe money after amending a return? 
  • A good tax problem solver pays for himself. 
  • Your Options for Fixing Tax Problems 
  • Footnotes
  • A preview of the contents of my other book, 10 Great Steps to a Great Crypto Tax Return

No longer be paralyzed with fear

get your copy to learn how to protect yourself!

US crypto tax services

Remember to follow me on Facebook and Twitter. Thanks for getting the word out to help your fellow traders.

About the Author

Clinton Donnelly

Clinton Donnelly is an Enrolled Agent with a law degree specializing in the international laws of financial regulation and taxation. As an Enrolled Agent he is admitted to practice before the IRS to represent taxpayers worldwide which is exactly what he does. He has clients in 48 different countries. In 2018, he helped 97 clients recover over $600,000 back from the IRS.

Many of his clients are cryptocurrency traders around the world. His largest trader did over 120,000 transactions. No situation is too complicated.

Clinton Donnelly has also been a tax law advisor to a crypto tax prep firm. He was a trusted tax adviser to three of the online crypto capital gains tax services and a US exchange. He is an author of three books and is a sought-after conference speaker for digital nomads, expats, and cryptotraders.

He specializes in preparing tax returns and resolving IRS problems for cryptotraders and Americans abroad or owning foreign assets.

Why Crypto Traders Are Low-Hanging Fruit For the IRS

A key resource for properly filing your crypto tax return and keeping yourself protected.

Sign Up For Our Crypto Newsletter

© 2020 Donnelly Tax Law | Terms of Use

Get Our Newsletter

Newsletter Signup for Do Nothing Subscribers
What tax topics are you interested in?

Your information is safe with us. By subscribing you are opting in to our mailing list and agree to our privacy policy, which you can click here to read.