Comprehensive financial statement audit, review and compilation for your organization.
Cryptocurrency tax services present assistance in classifying, calculating and reporting every taxable crypto event — so your return is fully designed to satisfy the IRS expectations. Instead of guessing — you get structured support for trade activities, swaps, DeFi activity, NFTs and mining as well as other digital asset movements.
For U.S. taxpayers, many crypto actions can create capital gains or ordinary income or self-employment income. A missed entry can simply trigger IRS notices or extra interest as well as stressful audits. Watter CPA steps in to connect wallet activity and exchange exports with tax forms — so your filing is 360 degree complete.
Expert help with crypto taxes should be considered if your activity goes beyond a simple crypto buy and hold. The typical scenarios can be listed as below:
Each of the abovementioned situations can have its own rules in line with crypto taxation, and Watter CPA presents aid in applying such rules to your distinct fact pattern.
Watter CPA starts by turning raw transaction data — into a clean history. We can outline our typical approach as below:
Watter CPA presents cryptocurrency tax filing services that cover the 360 degree, full lifecycle of your digital asset activity:
Clean up prior years — by adding unreported trades and income or losses.
Show each sale or disposition with a clear basis and proceeds alongside the gain or loss.
Combine activity from U.S. and offshore platforms into a single tax-ready file.
Classify rewards as income — then track later sales for capital gain or loss.
Use available data to estimate basis and potential loss treatment — when records are incomplete.
Evaluate whether events qualify for loss treatment in parallel to the current IRS rules.
Every engagement is structured so cryptocurrency tax preparation fits your broader financial goals, not just this year’s filing.
We are aware that IRS guidance on digital assets keeps evolving — and state-level approaches can naturally differ. Watter CPA monitors new notices, and court decisions along with agency updates that affect reporting positions with holding periods and character of income.
For better understanding, we present a quick snapshot below:
*Actual treatment depends on the distinct situation and current IRS guidance.
This context helps our clients plan holding periods and withdrawal timing alongside transaction structure before year-end — not after.
Watter CPA prepares your return, answers your questions in plain language and provides organized backup files for your records. If you want a responsive partner who recognizes crypto taxation and traditional tax rules in the same conversation — this team is ready to help. Reach out to us today for 360 degree crypto tax services.
Crypto taxes are simply the income and capital gains taxes that are owed once you trade, sell, swap, spend, or earn digital assets. The IRS treats most coins and tokens as property — so each taxable move can trigger a result — under crypto taxation rules.
Cryptocurrency tax services may be necessary if you trade often, use DeFi, earn staking or mining rewards, flip NFTs, or move coins — between several wallets and exchanges. Once activity grows beyond simple buying and holding — expertise reduces reporting mistakes.
If you skip reporting, the IRS can charge extra tax payments, interest fees and penalty payments once it matches your data to Form 1099 or exchange records. Correcting past returns and using cryptocurrency tax filing services going forward usually puts you in a safer position.
Yes, you can generally use realized trading losses to offset gains — and in some cases reduce other taxable income. Cryptocurrency tax preparation makes sure those losses are documented and presented correctly on the return.
You can handle simple crypto taxes yourself if you only finalized a few basic trades and have clean data. Once you add DeFi, NFTs, multiple wallets, or older missing data — a specialist in crypto taxation naturally can save a lot of time and stress.
Our dedicated team is ready to assist you on your path to financial success.
5 N Adams St,
Rockville, MD 20850, United States
At Watter CPA, we believe that understanding your needs is the first step toward providing exceptional service. Determining the specific service required involves a thorough review of your financial situation, which is only possible with proper documentation and accurate data. This approach helps us deliver tailored solutions that best meet your needs and compliance requirements.
Below, you will find answers to some of the most frequently asked general questions. If you have more specific inquiries or require additional information, please feel free to Contact Us.
