CryptoTaxAudit Launches the Crypto Tax Amnesty Initiative for U.S. Taxpayers

March 22, 2023 - PRLog -- CryptoTaxAudit, a full-service crypto tax and compliance firm, has launched the Crypto Tax Amnesty Initiative, which encourages US taxpayers to support a tax amnesty program for crypto traders and investors.

According to industry observers, 20% of U.S. adults own cryptocurrencies, but only 5% of individual tax returns indicated virtual currency ownership last year. This means that 15% of taxpayers are, to some degree, non-compliant with their cryptocurrency income reporting.

To address this issue, Clinton Donnelly, president of CryptoTaxAudit, launched an initiative to encourage US taxpayers to contact their congressional representatives and request tax amnesty program for all crypto owners. Donnelly today sent a letter to Daniel Werfel, Commissioner of Internal Revenue, proposing a tax amnesty program similar to the Streamlined Offshore Program (SOP) for cryptocurrency investors to encourage compliance.

Under this program, taxpayers could file or amend the last three years of tax returns, with prior years' under-reported crypto income being forgiven. Taxpayers would only be required to pay the calculated tax plus interest on these three years. Penalties for failure to pay, failure to file, and information return civil penalties would not be assessed. Additionally, Donnelly proposed that U.S. taxpayers only be required to file or amend the FBAR (FinCEN Form 114) for the last six years, with no penalties for late filing of the FBAR being assessed.

"I believe such a program would encourage non-compliant taxpayers to comply without fear of criminal prosecution," wrote Clinton Donnelly in his letter. Millions of U.S. crypto investors and traders, many of whom are young and uncertain about their crypto reporting requirements, would benefit from this proposal. It would protect them from criminal enforcement activities, which are ramping up following the IRS's recent funding increase by Congress.

The Crypto Tax Amnesty Initiative is a vital step towards addressing non-compliance related to cryptocurrency income reporting and is expected to increase transparency in the sector.

For more information, please visit CryptoTaxAmnesty.org.

About CryptoTaxAudit: CryptoTaxAudit is a full-service tax preparation, crypto calculation, and audit defense company founded by Clinton Donnelly. The company has an experienced team of crypto tax experts, including CPAs, enrolled agents, forensic accountants, and gain calculation analysts. The company provides personalized services to get clients into compliance, develop custom tax strategies, and provide professional representation before the IRS. Visit CryptoTaxAudit.com

Contact:
CryptoTaxAudit Media Relations
Email: marketing@cryptotaxaudit.com