Ahhh spring, the best season of the year. The season when we get to inhale pollen by the pound, the weather can't decide whether to be warm or cold, and we get the privilege of paying our taxes. For the cryptocurrency enthusiast, particularly with the wild swings in this nascent market, taxes are at minimal a daunting proposition. The temptation is there to ignore calculating those capital gains (or losses in 2018) altogether. Bad idea. The IRS has been taking measures to seek out the largest crypto-gains by filing John Doe summons (discussed in previous posts) and partnering with various companies which do 'chainanalysis' to trace the money and get their cut. When 1,000s of percent gains are at stake, the IRS will find you.
However, there are of course ways to play the game a little smarter. The following is reproduced with permission by a business associate and fellow cryptocurrency obsessive. Matthew Costa is a Certified Public Accountant and financial planner in Washington D.C. with RCN & Associates, LLC. Matt has helped a number individuals who made a great deal of gains from cyptocurrency and advised them on how best to handle their new wealth. I encourage a read:
Tax Planning for the Cryptocurrency Millionaire