If you are among the 16% of Americans who transacted with or traded cryptocurrencies last year, you’re probably sweating about the impending deadline for filing your taxes (that would be Monday, April 18). And if you’re an NFT enthusiast who’s changed your Twitter profile picture to an image of a nonchalant hexagonal monkey, chances are you need some professional advice when filing.
The U.S. Internal Revenue Service is likely to scrutinize, and possibly even verify, those who transacted with virtual currency this year Alex Roytenberg, known on Twitter as @TheNFTCPAsaid TechCrunch.
“I personally think the IRS was waiting for a great year of wealth and income to be generated, and 2021 was definitely that year,” Roytenberg said.
He added that due to the lack of formal guidance from US regulators on how to file taxes on various crypto products, the process requires the taxpayer to interpret how existing laws intended to regulate traditional assets might apply to entirely new technologies.
Roytenberg, CPA, has been a tax accountant for nearly 20 years, working at Morgan Stanley, Goldman Sachs and PwC. Roytenberg was first exposed to the Web3 space in 2018 after advising a number of Coinbase employees, and since then he’s been aiming to double down on his specialty, co-authoring the “NFT Tax Guide.” and speaking at industry events, including NFT.NYC.
Although Roytenberg recommends that passionate crypto traders seek professional and individual tax advice to eliminate gray areas, he also shared his thoughts with TechCrunch on a number of crypto tax preparation packages that may be helpful to filers this year.
Here is an overview of some of the most popular platforms available to crypto registrants today.