Why Your Crypto Taxes Need An Enrolled Agent Specializing in Crypto

An enrolled agent who specializes in crypto is just what you need for your crypto taxes. Learn more about enrolled agents and how they can help you.

enrolled agent crypto

You’ve recently become one of the crypto statistics.

One of over 10,000 crypto taxpayers the IRS suspected did not report their crypto taxes accurately and, therefore, would receive an IRS letter.

Now it’s happened, and you are about to learn why you need an enrolled agent to help you out of this mess.

You’ve received one of those dreaded crypto education letters direct from the IRS.

You worried this day would come since the IRS began cracking down on crypto traders back in 2019.

And nobody is blaming you for being fearful. You made some mistakes.  

You had significant gains on your income back in 2017.

And you likely had crypto assets worth over a million dollars in 2017 and 2018.  

But the truth is you never really understood how to report your crypto taxes correctly. Nobody did.

There were gaps, and essential documents were missing from what you eventually filed in the end. 

You didn’t know to file form 8824 (like-kind exchange) or form 8949 to report your crypto-to-crypto trades. 

You never filed any anti-money laundering forms FBAR or 8938.  

Your tax professional or CPA never even told you about these forms.

READ MORE: Why Crypto Traders Are Low-Hanging Fruit For The IRS and How Are Cryptos Reported On Anti-Money Laundering Forms

So, why didn’t your tax professional or CPA know about reporting these forms?

tax planning

They’ve been a trusted advisor for years. 

They’ve always been superb at meeting all of your tax needs.  

But you may have outgrown them with your needs as a crypto trader.

Have they not been able to guide you or answer your crypto questions even though they have been by your side for many years as your trusted advisor? 

New relationships must be born to guide you, but your trusted advisors can still have the advisory opinion on your business that you’ve cherished so much.  

Just beware of leaving your crypto in their hands and having more mistakes made.  

It’s time that your new needs are met.

So, where should you turn now that you have the IRS letter in your hand?

IRS letter

Surely you’ll continue to get blank stares when you ask what to do from here with your audit letter.  

You may have even mounted up a bundle of debt trying to find someone that wouldn’t say no to helping you with your crypto tax audit.

That is, until today since you have now had the good fortune of finding this post.

We never turn a client away, not even when everyone else has.

There is absolutely no need for fear when others have said no.   

We can get you back into compliance.    

When everyone else has turned you down, including your trusted Tax Advisor, you can always turn to Donnelly Tax Law.   

Our expert team of enrolled agents specializes in crypto tax audit protection.

We never turn any client away, no matter how complicated their situation is, and we will know how to defend you against the IRS best.

Why can an enrolled agent, specializing in crypto, best protect me from the IRS?

Back in 1884, Congress decided to create the enrolled agent profession to regulate representation for citizens dealing with the US Treasury Department.   

The IRS defines an enrolled agent as a person who has earned the privilege of representing taxpayers before the Internal Revenue Service by either passing a three-part comprehensive IRS test covering individual and business tax returns or through experience as a former IRS employee. Footnote 1

Enrolled agent is the highest credential awarded by the IRS and gives them unique powers when it comes to the process of tax. Footnote 1

The National Association of Enrolled Agents explains that enrolled agents are the only federally-licensed tax practitioners who specialize in taxation and have unlimited rights to represent taxpayers before the IRS.

Footnote 2

Enrolled agents’ expertise in the continually changing field of taxation enables them to represent taxpayers at all administrative levels within the IRS effectively. Footnote 2

The NAEA goes on to explain that the IRS Restructuring and Reform Act of 1998 provides federally-authorized practitioners (those bound by the Department of Treasury’s Circular 230 regulations) with a limited client privilege. This privilege allows confidentiality between the taxpayer and the enrolled agent under certain conditions. The privilege applies to situations in which the taxpayer is being represented in cases involving audits and collection matters. Footnote 2

Because of the expertise necessary to become an enrolled agent and the requirements to maintain the license, there are only about 53,700 practicing enrolled agents. Footnote 2

Only enrolled agents are required to demonstrate to the IRS their competence in all areas of taxation, representation, and ethics before they are awarded unlimited representation rights to represent taxpayers before the IRS. Unlike attorneys and CPAs, who are state-licensed and who may or may not choose to specialize in taxes, all enrolled agents specialize in taxation.

Footnote 2

enrolled agent

@CryptoTaxFixer

Donnelly Tax Law’s enrolled agents can defend you against your IRS Crypto Audit Letter.

crypto tax

In 1913, when the income tax was passed, the job of the enrolled agent included claims for monetary relief for citizens whose taxes had become inequitable. As income tax, estate tax, gift, and other sources of tax collections became more complex, the role of the Enrolled Agent evolved. They took on additional duties, including the preparation of the many tax forms. Footnote 3

Enrolled agents also had to learn about taxpayer advocacy. This additional skill involved negotiating with the Internal Revenue Service on behalf of their clients. Footnote 3

So, if you have received an IRS crypto education letter, don’t panic. Donnelly Tax Law can help. We are trained in negotiating with the Internal Revenue Service on behalf of our clients.

In the event of receiving an IRS letter, an enrolled agent can also represent you before the IRS. Enrolled agents have virtually unlimited practice rights, meaning there are no restrictions on the variety of taxpayers they are allowed to serve or the tax matters they can manage.

If you’re looking for representation outside the traditional tax filing season or you need representation before the IRS for an audit, appeals, or collections matter, then an enrolled agent is your best bet. Footnote 3

We never turn away a client, no matter how complicated their situation.  

We specialize in crypto tax compliance.

At Donnelly Tax Law, everything we do is about developing innovative defenses to protect our client’s wealth.

We create innovative defenses with our team of crypto data specialists, by using the most comprehensive tax preparation software, and knowing the latest tax and crypto laws.

We create bulletproof crypto tax returns, legal affidavits for tax amnesty claims, and represent our clients when their profits are in question with tax authorities.

Make an appointment today at Donnelly Tax Law.

If you have not yet received your IRS audit letter, then boy do we have a membership for you. Members of CryptoTaxAudit.com defense will receive year-round defense against the IRS if you receive one of these letters while enrolled in our membership.

Our members always receive the priority of our defense against non-members. 

This membership means that we will defend you against the IRS, but you must begin membership before receiving the audit letter.  

If you have already received your letter, we have several solutions at all your price point needs.

READ MORE: Why Crypto Traders Are Low-Hanging Fruit For The IRS 

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