Crypto tax accountants can qualify you for IRS penalty exemptions by proving reasonable cause for missed filings or securing first-time abatement if you have a clean three-year history. The IRS treats your Bitcoin differently than your stocks because it’s classified as property under Notice 2014-21, meaning every swap between coins triggers a taxable event. If you’re developing DeFi protocols, you may qualify for research and development credits under IRC Section 41, which can offset up to $250,000 in payroll taxes annually.
The IRS has served John Doe summons to major exchanges since 2016, giving them direct access to your transaction records from Coinbase, Kraken, and others. File Form 8949 with your complete transaction history showing dates, amounts, and cost basis for every trade to establish compliance. Reference IRS Publication 544 for complete guidance on reporting sales and dispositions of all digital assets on your return.