Don Farmer's Cryptocurrency Taxation: Tracking, Reporting & IRSEnforcement

Overview

As IRS scrutiny of digital assets intensifies, CPAs must stay current on cryptocurrency taxation and reporting requirements. This focused 2-hour course provides a practical update on the federal income tax treatment of cryptocurrency transactions, emerging reporting rules, and current IRS enforcement initiatives. Participants will review the tax implications of common digital asset transactions, including sales, exchanges, mining, staking, hard forks, and airdrops. The program emphasizes reporting requirements, including the Form 1040 digital asset question, Form 8949 reporting, and new broker reporting developments such as Form 1099-DA. Special attention is given to audit risk factors, documentation standards, and practitioner responsibilities in an evolving regulatory environment. This session is designed to equip tax professionals with the tools needed to ensure compliance and confidently advise clients in today’s increasingly regulated digital asset landscape.

Highlights

MAJOR TOPICS Federal Tax Treatment of Digital Assets • IRS classification of cryptocurrency as property • Tax consequences of sales and exchanges • Mining and staking income • Hard forks and airdrops Reporting Requirements and Compliance • Form 1040 digital asset disclosure • Form 8949 and Schedule D reporting • Schedule C considerations • Overview of broker reporting rules and Form 1099-DA developments IRS Enforcement Trends • Exchange reporting and John Doe summonses • IRS compliance campaigns • Civil penalties and potential criminal exposure • Audit risk indicators Practitioner Considerations • Documentation and substantiation best practices • Client interview strategies • Ethical responsibilities in digital asset reporting

Designed For

Tax Professionals

Objectives

Upon completion of this program, participants will be able to:

1. Identify the federal income tax treatment of common cryptocurrency transactions under current IRS guidance. 2. Determine appropriate reporting requirements for individuals and businesses engaging in digital asset activities. 3. Recognize key IRS enforcement trends and audit risk factors related to cryptocurrency transactions. 4. Apply practical compliance and documentation strategies to mitigate reporting risks.