What documentation should I keep to prepare for a crypto audit by the IRS?

3 answers

• Dec 17, 2021 · 3 years ago
  As a crypto investor, it's crucial to keep thorough documentation to prepare for a potential audit by the IRS. Here are some key documents you should keep: 1. Transaction records: Maintain a detailed record of all your cryptocurrency transactions, including purchases, sales, exchanges, and transfers. Include information such as dates, amounts, transaction IDs, and counterparties involved. 2. Wallet addresses: Keep a record of your cryptocurrency wallet addresses, both for your own wallets and any exchanges you use. This will help verify ownership and track the flow of funds. 3. Purchase and sale receipts: Save receipts or invoices for any purchases or sales of cryptocurrencies. These documents should include information about the transaction, such as the date, amount, price, and any fees incurred. 4. Exchange statements: Obtain and retain statements from cryptocurrency exchanges you use. These statements should show your account balances, transaction history, and any fees incurred. 5. Mining records: If you mine cryptocurrencies, keep records of your mining activities, including the date and time of mining, the type and amount of cryptocurrency mined, and any associated expenses. Remember, it's important to maintain accurate and organized documentation to support your cryptocurrency activities in case of an audit by the IRS.
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• Dec 17, 2021 · 3 years ago
  Oh boy, the IRS and crypto audits! It's a match made in heaven, isn't it? But hey, let's get serious. If you want to be prepared for a crypto audit by the IRS, you better keep your documentation in order. Here's what you should have: 1. Transaction history: Keep a detailed record of all your crypto transactions. Include dates, amounts, and the parties involved. You can use spreadsheets or specialized software for this. 2. Wallet addresses: Keep a list of your wallet addresses, both for your personal wallets and any exchanges you use. This will help you prove ownership and trace your funds. 3. Purchase and sale receipts: Hang on to receipts or invoices for any crypto purchases or sales. Make sure they include all the necessary details, like dates, amounts, prices, and fees. 4. Exchange statements: Get statements from the exchanges you use. These should show your account balances, transaction history, and any fees you paid. 5. Mining records: If you're into mining, keep track of your mining activities. Note down the date, time, and type of crypto you mined, as well as any expenses you incurred. Remember, the key here is to have everything well-documented and organized. It'll save you a lot of headaches if the IRS comes knocking.
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• Dec 17, 2021 · 3 years ago
  When it comes to preparing for a crypto audit by the IRS, it's important to have your documentation in order. Here are the key documents you should keep: 1. Transaction records: Maintain a detailed record of all your cryptocurrency transactions, including purchases, sales, exchanges, and transfers. This includes information such as dates, amounts, transaction IDs, and the parties involved. 2. Wallet addresses: Keep a record of your cryptocurrency wallet addresses, both for your personal wallets and any exchanges you use. This will help verify ownership and track the movement of your funds. 3. Purchase and sale receipts: Save receipts or invoices for any cryptocurrency purchases or sales. These should include details such as the date, amount, price, and any fees incurred. 4. Exchange statements: Obtain and retain statements from the cryptocurrency exchanges you use. These statements should show your account balances, transaction history, and any fees paid. 5. Mining records: If you engage in cryptocurrency mining, keep records of your mining activities, including the date and time of mining, the type and amount of cryptocurrency mined, and any associated expenses. By keeping these documents organized and readily accessible, you'll be better prepared for a crypto audit by the IRS.
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