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Improperly reporting cryptocurrency could lead to tax litigation

New York residents who are financially savvy may have jumped into the cryptocurrency game at its inception. Whether individuals have participated in crypto trades, mining, sales or other related activities, those actions may have become lucrative endeavors. Still, it is important to remember that if individuals do not report that income on their taxes, they could end up facing tax litigation.

Though some seasoned cryptocurrency experts may already know the proper way to report the income on their taxes, some individuals newer to this type of currency may not be so up to date. One of the biggest facts to remember is that the income must be reported. Not reporting this income is a violation of tax law, and it could lead to financial penalties or even criminal charges if not properly addressed.

It is also vital that parties keep up with their cryptocurrency records. Some individuals may not keep thorough records or records could get lost, and it may not seem like a big deal at the time. However, the IRS may require the information at some point, and not having complete records could spell trouble during an audit or other investigation.

Tax litigation, especially when related to criminal charges, is no laughing matter. Some New York residents may think that they can keep their cryptocurrency out of the IRS radar, but the agency is becoming more adept at keeping track of such transactions. Of course, in the event that individuals face charges or other issues regarding their tax matters relating to cryptocurrency, they may want to enlist the help of experienced tax attorneys to address the issues.

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