Tales from the Darkside: IRS Enforcement of Cryptocurrency

Overview

Bitcoin and other cryptocurrencies have created a new generation of millionaires, with the benefit of anonymity. Whether the cryptocurrency is being used for criminal activity or held as a legitimate investment, the IRS is spending substantial resources in finding those who possess, purchase, and sell cryptocurrencies to ensure that the tax, banking, and money laundering laws are being followed. Are you or your firm prepared to advise your client when reporting cryptocurrency transactions? Can you identify when cryptocurrency is being used for potential criminal purposes? Can you prepare an accurate tax return related to cryptocurrency transactions? Do you know what questions to ask your client or what documents to request? This course will give you a brief overview of cryptocurrencies, how this new technology is being regulated, the common ways that cryptocurrencies are used to evade tax and money laundering laws, and what is expected from taxpayers and their return preparers when cryptocurrencies are involved. Your instructor is a former special agent with IRS-Criminal Investigation. He spent many years finding, investigating, and prosecuting tax and money laundering crimes that were using cryptocurrency as the form of payment. This event may be a rebroadcast of a live event and the instructor will be available to answer your questions during the event.

Highlights

The major topics covered in this class include:

• Overview of Bitcoin and cryptocurrencies
• Definition of proof of work and proof of stake
• Tax laws regarding cryptocurrency transactions
• Definition of common money laundering laws involving cryptocurrencies
• Tools used by the IRS to identify cryptocurrency transactions and cryptocurrency in criminal investigations
• Real life examples of cryptocurrency used in criminal activities

Prerequisites

None

Designed For

Forensic Accountants, CPA, Return Preparers

Objectives

After attending this presentation you will be able to...

• Give an overview of how Bitcoin and cryptocurrencies operate
• Recognize the difference between proof of work vs proof of stake in verifying the blockchain
• Prepare a proper tax return with cryptocurrency transactions
• Identify common money laundering violations involving cryptocurrencies
• Identify the tools used by the IRS to identify cryptocurrency transactions for civil and criminal violations
• Recall the learning objectives in real life examples of cryptocurrency transactions

Preparation

None

Notice

This course is provided by a third-party vendor. Please note that login instructions will not be available in the ‘My Upcoming CPE’ section of the NESCPA website. Instead, the login instructions will be sent directly to you via email by CPA Crossings. Upon completing the course, your hours will be recorded in the ‘My CPE Tracker’ section of the NESCPA website.