Factors to Consider When Looking For a Bitcoin Tax Account
Bitcoin, as well as other cryptocurrencies, bring about unique difficulties when you are doing your taxes. Even though to some extent, they are similar to stocks and bonds, they have differences that can bring about a significant impact on the tax amount you owe. Professional accountants can assist you to maneuver through the complications, but it can be a hassle to find an individual with the right expertise. There are some simple procedures that you can consider if you want to get the best accountant who will be in charge of your bitcoin and other cryptocurrency transactions. When you are coming up with a list of prospective leads, you need to look for certified professional accountants, certified public accountants who are also IRS enrolled agents to represent you. Let’s have a look at the factors to consider when looking for a bitcoin tax accountant to prepare your taxes.
Consider the expertise of the accountant. A majority of the accountants are not conversant with cryptocurrencies because most individuals do not include them on their taxes. Even though they are relatively the same as other capital assets like stocks, it has vital differences and complexities where it helps to have the expertise of a professional. The ideal way to evaluate the expertise of the professional is to have the accountant tell you about specific cases of how they assisted a crypto client in the past. You should be keen on how they describe crypto tax law and if they talk about any outside advice like tax-loss harvesting.
The other thing you should look out for is customer references. Many individuals get professional assistance through recommendations either from business colleagues, family or friends. If you are an active participant in the online or local crypto community, you can consider getting referrals to accountants that have successfully worked with other people. In case you come across an accountant online, you can request them to give you the commendations so that you can contact them. While online reviews can be beneficial, sometimes they can be forged.
Also, consider the customer support of the accountant. Customer support goes a long way when doing tax planning and preparation. If you experience challenges finding an accountant, you might find yourself in big problems if the IRS requires you to give them more information or opts to conduct an audit. Your accountant needs to be receptive and motivated. Responsive communication is vital if you are working with an online or remote accountant. It would help if you had different channels of reaching out of the accountant and also cost-effective, quick and reliable means to send confidential documents without having to use highly-priced courier services.
Consider the costs. Tax preparation can be less costly for individuals with simple tax returns. But most of the time, cryptocurrency trading can result in costly tax preparation expenses. In case you made numerous trades, you should have written them down on the IRS form, and most accountants will charge you by page or per hour. In certain situations, you can reduce the cost by preparing refilled tax forms. From there, the accountant wage import your transaction data from exchanges and wallets and free feels IRS forms, and this will reduce the time and money you spend on tax preparation.