Just like other types of investment transactions, cryptocurrency sales and trades are considered taxable events under the Internal Revenue Code. This does not necessarily mean that you owe tax on the transaction (if you lost money on a trade, for example, you would not owe tax), but it does mean that you have an obligation to report the transaction to the Internal Revenue Service (IRS) and pay tax if tax is owed.

If you have fallen behind on your federal taxes, you are not alone. According to Internal Revenue Service (IRS) data, more than 14 million U.S. taxpayers owe outstanding taxes, interest and penalties. Due to this enormous number, the IRS offers various options to taxpayers who are in need of financial relief, one of which is the offer in compromise program.