ENHANCING TRUST
Crypto & Digital Asset Solutions
Mildrid Esua, CPA is the global leader in digital asset solutions, providing innovative, best-in-class products and services for the industry since 2014.
INDUSTRY FOCUSED
Services Specialized for the Digital Asset Economy
Our industry-focused practice serves digital asset financial service firms, miners & stakers, funds, token projects, and “crypto-curious” companies in a variety of ways to fulfill the unique needs of the industry.
YOU IN MIND
A Flexible and Client-focused Approach
Standards and best practices for the digital asset industry evolve at a rapid pace. We embrace ambiguity and actively work with our clients to find common-sense solutions to solve new industry problems.
Mildrid Esua CPA is experienced with cryptocurrency taxation. You can trust us with your tax filings because we’re well-versed in cryptocurrency tax rules and regulations. We know how to accurately prepare and file your tax returns in line with the most current laws governing cryptocurrency so you avoid penalties, keep more money in your pocket and don’t get into trouble with the IRS.
IRS and Cryptocurrency
Form 8949 Filing
The package takes care of reconciling and reporting the gains and losses of all the crypto transactions for the entire year including airdrops.
FBAR Filing
FBAR filing (Report of Foreign Bank and Financial Accounts) may be required if you acquired Bitcoin or other altcoins on a foreign exchange. Failure to disclose crypto holdings can result in penalties assessed up to $10,000 or greater.
FATCA Filing
Similar to FBAR reporting, you may need to file 8938 if you have crypto coins held on a foreign exchange. Penalties can reach up to $60,000 for failing to disclose.
These rules apply to all digital and cryptocurrencies including Bitcoin (BTC), Ethereum (ETH), Litecoin (TLC), Dash (DASH), Ripple (XRP), Bitcoin Cash (BCH), etc. You may also be required to file an FBAR and possibly IRS Form 8938 and report all of the digital and cryptocurrencies that you currently own. And, if you don’t report your virtual transactions properly, the IRS may go after you for penalties and interest and, in some cases you may even face criminal prosecution.
Wages paid to employees using virtual currency are taxable to the employee, must be reported by an employer on a Form W-2, and are subject to federal income tax withholding and payroll taxes.
Payments using virtual currency made to independent contractors and other service providers are taxable and self-employment tax rules generally apply. Normally, payers must issue Form 1099.
The character of gain or loss from the sale or exchange of virtual currency depends on whether the virtual currency is a capital asset in the hands of the taxpayer.
A payment made using virtual currency is subject to information reporting to the same extent as any other payment made in property.