Hey ,

Just a friendly reminder that tax season is officially underway, and this year, the IRS is keeping a closer eye on one thing in particular: cryptocurrency.

They've added a new question to ALL tax forms, including individual returns (1040), estate and trust returns (1041), and even business forms (1065, 1120, etc.). 

The question reads:

"At any time during 2023, did you: (a) receive (as a reward, award, or payment for property or services); or (b) sell, exchange, or otherwise dispose of a digital asset (or a financial interest in a digital asset)?"

So, whether you bought and sold Bitcoin, mined some Ethereum, or even received Dogecoin as a tip, you need to answer this question. Checking "Yes" doesn't automatically mean you owe more taxes, but it does let the IRS know you've been dabbling in the crypto world.

Don’t wanna read the entire email? Watch this update on Instagram: 

https://www.instagram.com/p/C2gZGI8JNZW/ 

Here's the deal:

• If you only held your crypto throughout the year and didn't trade or sell any, you can probably answer "No."

• But if you did any kind of transaction involving crypto (buying, selling, trading, mining, etc.), you'll need to check "Yes" and potentially report additional income.

Don't panic! This doesn't have to be stressful. If you're unsure about anything, here are some resources to help:

• The IRS Digital Assets page.
• My blog post with a breakdown of how the IRS will tax cryptocurrency and digital assets.
• A qualified tax professional like me.

Remember, transparency is key. Answering the question honestly will help avoid any headaches down the road.

P.S. Keep an eye out for more tax tips and updates throughout the season! I'll be sharing everything you need to know to file your return with confidence.

Stay informed, stay compliant, and happy filing!

Your favorite tax professional, 

Folasade,

(202) 618-1295

[email protected] 

Hey Entrepreneur! I am Folasade Ayegbusi. I am an Enrolled Agent, Accountant, Ex-insurance Broker, Speaker, and Small Business Growth Strategist. Additionally, I am a Mother, and Entrepreneur.

I have helped entrepreneurs and small business owners save over $25 million dollars in lost revenue, tax assessments, penalties, and interests over the last 12 months. I am confident that I can assist you with all of your accounting needs.