New IRS Scrutiny on Cryptocurrency Reporting: Filing Requirements & Exchange Treatment


CLE Credits earned: 2 GENERAL (or 2 LAW & LEGAL for WA state)

This presentation will provide tax counsel, accountants and other advisers with a critical first look at new IRS initiatives on taxpayer compliance and reporting obligations for cryptocurrency (e.g. Bitcoin, Coinbase) transactions. The panel will discuss the IRS position on cryptocurrency as property rather than cash, analyze IRS monitoring to increase compliance, consider criminal investigations and prosecutions for failing to properly report cryptocurrency transactions and define proper reporting and tax treatment for “mining” and exchanging cryptocurrency.

Key topics to be discussed:

•   What are the limitations on loss recognition on cryptocurrency transactions and exchanges?
•   What are the income tax-reporting requirements for cryptocurrency exchanges and valuations?
•   What position does IRS appear to be taking on whether cryptocurrency exchanges qualify for 1031 treatment, and the impact of the newly enacted Tax Cut and Jobs Act of 2017?
•   What is the likely impact of the recent enforcement of the IRS “John Doe” summons to Coinbase?
•   What are the disclosure requirements for cryptocurrency ownership?
•   How to use the IRS Voluntary Disclosure policy to get into compliance and the availability of “qualified amended returns” to avoid penalties?

Date / Time: March 18, 2019

•   2:00 pm – 4:00 pm Eastern
•   1:00 pm – 3:00 pm Central
•   12:00 pm – 2:00 pm Mountain
•   11:00 am – 1:00 pm Pacific

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•   Live Video Broadcast/Re-Broadcast: Watch Program “live” in real-time, must sign-in and watch program on date and time set above. May ask questions during presentation via chat box. Qualifies for “live” CLE credit.
•   On-Demand Video: Access CLE 24/7 via on-demand library and watch program anytime. Qualifies for self-study CLE credit. On-demand versions are made available 7 business days after the original recording date and are view-able for up to one year.

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Original Broadcast Date: January 10, 2019

Steven Toscher, Esq. specializes in civil and criminal tax controversy and litigation. He is a Certified Tax Specialist in Taxation, the State Bar of California Board of Legal Specialization, a Fellow of the American College of Tax Counsel and has received an “AV” rating from Martindale Hubble.

In addition to his law practice, Mr. Toscher has served as an Adjunct Professor at the USC Marshall School of Business since 1995, where he teaches tax procedure. He has also served on the faculty of the American Bar Association Criminal Tax Fraud Program since 1998. He is a former Internal Revenue Agent with the Internal Revenue Service and a trial attorney with the Tax Division of the United States Department of Justice in Washington, D.C. where he received its Outstanding Attorney Award.

Mr. Toscher is a past-Chair of the Taxation Section of the Los Angeles County Bar Association and served as a member of the Editorial Board for the Los Angeles Lawyer during 1996-1999. He is a member of the Accounting and Tax Advisory Board of California State University, Los Angeles, Office of Continuing Education.

Mr. Toscher was the 2018 recipient of the Joanne M. Garvey Award. The award is given annually to recognize lifetime achievement and outstanding contributions to the field of tax law by a senior member of the California tax bar.

Mr. Toscher is a frequent lecturer to professional groups and author on civil and criminal tax controversy topics. He is frequent contributor to the Los Angeles Lawyer, The Journal of Tax Practice and Procedure and Tax Management Bureau of National Affairs. He is a co-author of “Tax Crimes,” Bureau of National Affairs – Tax Management, Publication 636 2nd.

Mr. Toscher received his Bachelor’s Degree in Accounting from the University of Nevada, Las Vegas (with honors), and received his Law Degree from the University of San Diego (summa cum laude). Mr. Toscher is a member of the State Bars of California, Nevada, and Colorado. Mr. Toscher has been a member of the Faculty of the ABA Criminal Fraud Program for many years.

Michel R. Stein, Esq. is a principal at Hochman, Salkin, Rettig, Toscher & Perez, specializing in tax controversies, as well as tax planning for individuals, businesses and corporations. For almost 20 years, he has represented individuals with sensitive issue civil tax examinations where substantial penalty issues may arise, and extensively advised individuals on foreign and domestic voluntary disclosures regarding foreign account and asset compliance matters.

Mr. Stein is well respected for his expertise and judgment in handling matters arising from the U.S. Government’s ongoing enforcement efforts regarding undeclared interests in foreign financial accounts and assets, including various methods of participating in a timely voluntary disclosure to minimize potential exposure to civil tax penalties and avoiding a criminal tax prosecution referral. He has assisted hundreds of individuals who have come into compliance with their foreign reporting requirements through the OVDP, Streamline or otherwise.

Throughout his career, Mr. Stein has represented thousands of individual, business and corporate taxpayers involved in civil examinations and administrative appeals, tax collection matters as well as with possible assertions of fraudulent conduct and in defending criminal tax investigations and prosecutions at every administrative level within the IRS. He has litigated tax cases in the U.S. Tax Court, the U.S. District Court, and various U.S. Circuit Courts of Appeal. He continues to provide tax advice to taxpayer’s and their advisors around the world.

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Section I. Introduction

Section II. Means of Obtaining Cryptocurrency

Section III. Cryptocurrency Guidance

Section IV. IRS Notice 2014-21 – Tax Reporting Rules for Cryptocurrency

Section V. Special Tax Issues for Cryptocurrency

Section VI. Potential Foreign Disclosure Requirements

Section VII. IRS Civil Examination Considerations

Section VIII. IRS Criminal Investigation Considerations

Section IX. Use of Voluntary Disclosure to Get into Compliance

Section X. Future of Cryptocurrency Enforcement

Section XI. Glossary of Key Terms