The IRS Expects 12 Million Taxpayers to Report Cryptocurrency Transactions in 2020

For the first time, the 2020 IRS Form 1040 will include a field dedicated to virtual currency, meaning millions of American traders may be seeing this question for the first time. Many of them will have questions, and they will be coming to you for answers. Here, we'll explain the challenges of cryptocurrencies and share the tools needed to simplify reporting for these unique investments.


Overview | Resources | Crypto Tools for Tax Pros


The Cryptocurrency Challenge

What's the big obstacle when it comes to crypto? Every virtual currency transaction is considered a taxable event, but cryptocurrency exchanges don't provide form 1099B like more traditional investment firms. As a result, it becomes the tax professional's responsibility to calculate gains and losses, cost basis, etc. Unfortunately, this can be incredibly complex, particularly if your clients use multiple exchanges. 

1040 Virtual Currency
Virtual Currency: Form 1040 Addition


1040 Virtual Currency

The Good News

With uncertainty comes opportunity, and there are undoubtedly opportunities for forward-thinking tax professionals in the crypto space. Virtual currency is no longer a niche — CoinBase, just one of hundreds of exchanges, has more than 43 million users and $90 billion in assets. Fortunately, tools like Cointracker and Ledgible are designed specifically to automate form 8949 for virtual currency assets to easily import into CCH Axcess™ Tax or CCH ProSystem fx® Tax. 

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 CCH® Tax Talks Podcast 

The Taxation of Cryptocurrency 

In this two-part podcast series, we sit down with Shehan Chandrasekera, Head of Tax Strategy at Cointracker and regular cryptocurrency contributor for Forbes, as well as Kell Canty and John Wandrisco from Ledgible. During the conversation, these crypto tax experts explains the unique challenges of crypto for tax preparers and share how you can drastically simplify the process with one easy to use tool.

Part 1: The Unique Challenges of Crypto →
Shehan Chandrasekera, Head of Tax Strategy at Cointracker

Part 2: The Impact of Crypto in Accounting → Kell Canty & John Wandrisco of Ledgible


Shehan Cointracker

"There are a lot of new clients coming into this space. If you can build expertise, there’s a huge opportunity... You can become a practice leader."

Shehan Chandrasekera, CPA 
Head of Tax Strategy, Cointracker

How to Serve Your First Cryptocurrency Tax Client
Read Shehan's incredibly in-depth and informative blog post, covering everything from the basics of how cryptocurrencies are taxed, to examples of completed forms, to highly-specific situations like virtual currencies held in offshore exchanges.

Read the Blog Post

Recommended Cryptocurrency Tools for Tax Professionals


Simply have your clients connect the Cointracker app to their wallets and exchanges, and Cointracker automatically calculates gains and losses, instantly generating tax reports.

Learn More


Ledgible Tax Pro - built specifically for tax professionals - provides a crypto tax solution designed to simplify the process for you, your clients, and your team members. 

Learn More


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