This article is part of TokenTax's Cryptocurrency Tax Guide.
As demand for cryptocurrencies has increased, so has the demand for cryptocurrency accountants and CPAs who specialize in this field. These crypto tax experts can keep you informed and show you how to take advantage of gains and losses before and after tax season.
Is hiring an accountant for cryptocurrency worth it?
The status of cryptocurrencies is still murky. However the IRS has begun to clamp down and distribute detailed guidelines for how digital currencies is taxed — specifically how gains/losses, cost basis, and tax deductions from losses are to be recorded now and in the future.
Working with a crypto CPA is a great way to prepare your data for tax season and beyond
Alongside their capital gains, many crypto traders will need help accounting for crypto mining and staking as well. Or, they may need help understanding the difference between taxable events that will affect their tax liability and non taxable events that need to be recorded for their crypto tax calculations.
While the cryptocurrency community scrambles to understand what the tax law expects of them, normal accounting firms will be familiar with the basics of cryptocurrency tax preparation, like filing a Form 8949. However these accountants may not have a grasp of the nuances of tax reporting that crypto tax accounting demands.
How much does hiring a crypto CPA cost?
The rates for crypto CPAs vary based on the complexity of your situation and the amount of assistance you’re looking for. We have a team of accountants who are helping clients reconcile their crypto taxes, and it's all possible using our cryptocurrency tax software.
Prices vary from $65 to $1,749 for our crypto reconciliation service, with our highest tier clients able to submit up to 30k transactions, generate all of their forms ranging from a standard 8949 to an FBAR, receive IRS audit assistance, and even get one on one sessions with one of our tax experts.
We also offer a full filling service ranging from $499 to $2,249, where a crypto CPA will be working with you directly from the beginning, starting with data collection, all the way to filing all of your tax documents for you.
TokenTax has crypto accountants available to speak with directly from the moment you sign up. It’s important for our clients to know that there are humans on the other side of their inquiry that are looking into their financial situations and are available to troubleshoot their crypto activity with them.
Some questions to ask before hiring an accountant
How familiar are you with cryptocurrency?
What does your process look like and how long will it take?
Can you calculate my data from multiple exchanges?
Do you know the definition for staking and mining and how they affect my taxes differently?
Have you filed an FBAR before?
Do I need to give you my data for past years?
I don’t have all of my trade data. What can I do still file accurately and on time?
How do I find a cryptocurrency accountant near me?
Working with a CPA that understands virtual currency transactions will give you a leg up on other traders using normal tax professionals. TokenTax is based in NYC, but we have clients all over the United States, the UK, Australia and the rest of the world.
At TokenTax you can work with a cryptocurrency CPA who specializes in bookkeeping crypto from any exchange. We will calculate your crypto tax liability and capital gains or losses, give you full accounting services and get you in position to get the most out of your tax return. Our accounting standards have risen every year, and we would like to attribute that to the diverse challenges our customers are facing — and our determination to put them at ease.
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