How to Find a Crypto Tax Accountant
TokenTax content follows strict guidelines for editorial accuracy and integrity. We do not accept money from third party sites, so we can give you the most unbiased and accurate information possible.
A crypto tax accountant stays current with the latest trends and tax consequences around crypto and ensures their clients properly file their taxes.
A qualified crypto accountant will be comfortable discussing a range of topics around the tax consequences of various crypto activities, including short- and long-term trades as well as staking and mining.
As demand for cryptocurrency has increased, so has the need for crypto accountants and CPAs who specialize in this young and growing field. A crypto tax accountant 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 tax status of cryptocurrency remains murky. However, the IRS has begun to clamp down and distribute detailed guidelines for how digital currencies are taxed — specifically how gains/losses, cost basis, and tax deductions from losses are to be recorded now and in the future.
Alongside their capital gains, many crypto traders will need help accounting for crypto mining and staking as well. They may also need help understanding the difference between taxable events that will affect their tax liability and non-taxable events that need to be recorded for 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 such as filing a Form 8949. However, these accountants may not have a grasp of the nuances of tax reporting that crypto tax accounting demands.
Let our expert team do your crypto taxes for you.
Why you should hire a crypto tax accountant
Crypto moves fast, and so do crypto tax regulations. As crypto adoption has increased, so has the demand for crypto accountants who specialize in crypto and truly understand the rapidly evolving space.
An expert crypto accountant stays current with all the latest trends and tax consequences around crypto and works to ensure their clients properly file their taxes and maximize their crypto returns. Given the complex nature of crypto taxes and increased IRS scrutiny, hiring a professional crypto tax accountant is increasingly necessary for those engaged in crypto.
What does your crypto tax accountant need to file your taxes
A crypto tax accountant will need a complete record of your crypto activity. Fortunately crypto records are easily accessible, whether you trade on a centralized exchange or use DeFi.
Depending on how complex your crypto activity is, you may need to provide further details about staking or mining and other professional crypto activity. Crypto holders should maintain thorough records of transactions, gains and losses, and expenses related to crypto if they trade professionally or engage in other crypto activities as a professional or business.
You can learn more about how to report cryptocurrency on taxes. A qualified crypto accountant like ours at TokenTax will be able to walk through your crypto taxes, assist with any questions, and ensure you get the most out of your crypto this and every tax season.
What are the costs for a professional crypto CPA?
The hourly rate for a professional crypto accountant will vary, and how much you can expect to pay will depend on the complexity of your crypto transactions. A CPA will charge between $37 to $400 an hour, and many will not be qualified as crypto tax accountants.
Given the complexity and shifting regulations around crypto taxes, it’s important to work with a true crypto tax accountant who understands the ins and outs of the industry. TokenTax VIP starts at just $3,499 and is the recommended solution for those who want absolute confidence in their crypto tax filing. Our VIP plan includes a dedicated crypto tax accountant and more.
TokenTax crypto tax services
TokenTax is the crypto tax calculator and full-service accounting firm that gives you everything you need to file completely and correctly, regardless of what you’ve traded or where you live. When looking for a crypto tax professional, you don’t need to ask “How do I find a crypto tax accountant near me?” Rather, you should look for the best service available.
TokenTax syncs with your wallets and accounts to largely eliminate manual data entry, allowing you to see and analyze all of your data in one place. Our crypto tax services begin at just $65 a year.
For advanced investors who want expertly prepared tax returns, our VIP plan includes support for up to 30,000 transactions, two 30-minute consultations with a tax professional, advanced reconciliation services, and more.
Some questions to ask before hiring an accountant
To ensure the crypto tax accountant you hire is qualified, consider asking some of the questions below before hiring them. A qualified crypto accountant should be comfortable discussing these topics.
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 definitions of staking and mining and how they affect my taxes differently?
Have you filed a crypto 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 to still file accurately and on time?
Frequently asked questions
Here are answers to frequently asked questions, and how a crypto tax accountant can help.
Will the IRS audit you for crypto?
While it’s unlikely the IRS will audit you for crypto, there is always the possibility of an audit. Between 2010 and 2018, the IRS audited about 0.6% of personal returns and 0.97% of corporate returns. That noted it’s strongly recommended you work with a crypto tax accountant to ensure your returns are properly filed and accurate.
How to pay less taxes on crypto
There are a number of legal ways to reduce your crypto taxes. For US traders, holding for long-term capital gains is an obvious choice. You may also consider donating some of your crypto or a tax loss harvesting strategy. This is another area where a crypto accountant will be able to advise and assist.
To stay up to date on the latest, follow TokenTax on Twitter @tokentax.