The Internal Revenue Service (IRS) issued updates to its Frequently Asked Questions on Virtual Currency Transactions in January. With the IRS emphasizing cryptocurrency tax compliance in 2022, investors and businesses that held Bitcoin or other virtual currencies during the 2021 tax year need to ensure that they are meeting their federal obligations, and reviewing the IRS’s FAQs is a good place to start (although taxpayers cannot rely on these FAQs exclusively). In this article, Boston tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group, covers some of the highlights:Read More

Cryptocurrency investing exploded in popularity in 2021, and apps like Coinbase and Robinhood make it easy for individuals to invest in the digital currencies of their choosing. Unfortunately, it appears that many people jumped into cryptocurrency investing without giving due consideration to the tax implications involved. Cryptocurrency trading is a taxable activity, and buying and selling coins can result in substantial liability to the Internal Revenue Service (IRS). In this article, Boston tax lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group, explains some key principles investors need to keep in mind when preparing their returns in 2022.Read More

Targeting cryptocurrency-related tax fraud was a priority for the Internal Revenue Service’s Criminal Investigations Division (IRS CI) in 2021, and IRS CI has made clear that this will remain a priority in 2022 and beyond. Notably, however, IRS CI is not solely targeting cryptocurrency investors for tax-related offenses. In many cases, the division is targeting investors for violations of the Internal Revenue Code and other statutes; and, in some circumstances, IRS CI is targeting investors solely for non-tax-related crimes. Boston criminal tax lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group, explains.Read More