Navigating the financial and tax landscape of cryptocurrency and digital businesses can feel overwhelming. With rapidly evolving regulations, complex transaction tracking, and high stakes involved, it’s more important than ever to work with a trusted professional who truly understands the blockchain economy.
You don’t need just any accountant — you need a Certified Public Accountant (CPA) who specializes in crypto and online business taxation. Whether you're a long-term Bitcoin holder, an active day trader, a DeFi participant, or running a blockchain-based startup, expert guidance can make the difference between compliance and costly penalties — or missed opportunities.
👉 Discover how a crypto-savvy CPA can protect your profits and simplify your taxes.
Why You Need a Cryptocurrency Tax Expert
The IRS treats cryptocurrency as property, not currency. This means every transaction — from buying a coffee with Bitcoin to earning staking rewards — could have tax implications. Yet most traditional CPAs lack the technical knowledge to accurately report these events.
Micah, a licensed CPA and blockchain accounting specialist, has been at the forefront of crypto taxation since its early days. As both an investor and an accountant, he lives and breathes the digital asset space daily. His deep understanding of blockchain technology, combined with rigorous accounting standards, allows him to deliver precise, strategic tax solutions tailored to your unique situation.
“Micah is definitely somebody you can count on to do what he says (and more). I recommend him to everybody I know.”
His clients include individual investors, NFT creators, decentralized finance users, and fast-growing internet businesses — all facing dynamic financial environments that demand specialized expertise.
Comprehensive Accounting for Crypto Transactions
Are you unsure which crypto activities must be reported? Do you struggle to track your trades across multiple exchanges and wallets?
You're not alone. Most investors don’t realize that simply transferring crypto between wallets may trigger a taxable event — or that earning yield from liquidity pools counts as income.
Our team provides full-service crypto accounting, helping you:
- Reconcile transactions across exchanges like Coinbase, Binance, Kraken, and more
- Classify gains, losses, income, and gifts accurately
- Maintain IRS-compliant records using advanced blockchain analysis tools
- Prepare detailed transaction reports for audit readiness
We take the confusion out of recordkeeping so you can focus on growing your portfolio.
👉 See how professional crypto accounting can save you time and reduce tax liability.
Most Popular Services
Crypto Tax Preparation
We were among the first firms in the U.S. to specialize in cryptocurrency tax filing. From simple buy-and-hold strategies to complex algorithmic trading, our experience covers every corner of the market.
Our crypto tax preparation service includes:
- Accurate cost basis calculations using FIFO, LIFO, or specific identification methods
- Capital gains and loss reporting on IRS Form 8949 and Schedule D
- Reporting of staking, mining, airdrops, and hard fork income
- Multi-year catch-up filings for unreported transactions
- Full federal and state tax return integration
We ensure compliance while identifying every legal opportunity to minimize your tax burden.
Other Tax & Accounting Services
While crypto is our specialty, our expertise extends to all digital-first businesses:
- E-commerce accounting (Shopify, Amazon FBA)
- SaaS and subscription-based revenue models
- Online course creators and digital product sellers
- Freelancers and remote workers paid in crypto
If your income stream is online, we speak your language — technically and financially.
Key Crypto Tax Obligations You Must Know
Understanding your responsibilities is the first step toward smart tax planning. Here's what the IRS requires:
You Sold Cryptocurrency
Selling Bitcoin or other digital assets triggers a capital gain or loss. If you sold for profit, taxes apply. If you sold at a loss, you may be able to offset other gains or up to $3,000 in ordinary income annually.
Holding period matters: assets held over one year qualify for lower long-term capital gains rates.
You Bought Cryptocurrency
Purchasing crypto with fiat currency (USD, EUR, etc.) is not a taxable event — as long as you’re simply holding. No reporting is required at this stage.
However, once you dispose of it (sell, trade, spend), taxation begins.
You Paid for a Service with Cryptocurrency
Spending crypto is treated as a disposal. You must report the fair market value of the goods or services received in USD at the time of transaction — plus any capital gain or loss on the appreciated value of the crypto used.
For businesses: paying employees in crypto requires W-2 reporting; paying contractors triggers 1099-MISC obligations.
You Were Paid in Cryptocurrency
Income received in crypto — whether from employment, freelancing, or business revenue — is taxable at its USD value on the date received. This applies regardless of whether you later convert it to cash.
Self-employed individuals must also pay self-employment tax on such income.
You Gave a Gift of Cryptocurrency
Gifting crypto may trigger gift tax rules if the value exceeds annual exclusion limits ($18,000 in 2025). However, strategic gifting can be a powerful wealth transfer and tax planning tool — especially when giving low-basis assets to family members in lower tax brackets.
You Made a Charitable Donation
Donating cryptocurrency directly to a qualified nonprofit can provide significant tax advantages. You may deduct the full fair market value of the donated coins and avoid capital gains tax entirely — a win-win for generosity and tax efficiency.
Frequently Asked Questions
Q: Do I need to report crypto if I didn’t cash out?
A: Yes. Trading one cryptocurrency for another (e.g., BTC to ETH) is a taxable event, even if you never converted to fiat.
Q: What if I only made small trades?
A: There is no de minimis exemption for crypto transactions. All disposals must be reported, regardless of size.
Q: Can I get audited for crypto taxes?
A: Absolutely. The IRS uses third-party data from exchanges and blockchain analytics to identify non-compliance. Audit rates for crypto filers are rising.
Q: How far back should I file if I haven’t reported before?
A: We recommend catching up on at least the past three years. The IRS allows voluntary disclosure without penalties if done proactively.
Q: Does staking count as income?
A: Yes. According to recent IRS guidance, staking rewards are taxable when you have full control over them ("dominion and control").
Q: Can I reduce my crypto taxes legally?
A: Yes. Strategies include tax-loss harvesting, charitable donations, retirement account contributions, and strategic timing of sales.
👉 Learn proven strategies to legally minimize your crypto tax bill.
Final Thoughts
Cryptocurrency and digital businesses operate at lightning speed — but tax rules move slowly and often lag behind innovation. That gap creates risk… and opportunity.
By partnering with a CPA who deeply understands blockchain accounting, you gain peace of mind, stay compliant, and unlock financial strategies most accountants miss.
Don’t leave money on the table or expose yourself to unnecessary risk. Whether you're filing for the first time or optimizing an established portfolio, expert help is within reach.