Cryptocurrency and Business Tax Compliance Lawyer

Businesses comply with cryptocurrency tax rules by properly tracking, reporting, and substantiating all crypto-related transactions as part of their federal tax filings. At Booth P.C., our role is to help you identify taxable events such as receiving crypto as payment, trading or converting digital assets, using crypto for expenses, mining or staking income, and holding crypto on the balance sheet. At Booth P.C., we help you implement compliant recordkeeping, reconcile exchange and wallet data, address prior reporting gaps through amended returns or disclosure strategies, and respond to IRS inquiries so your business meets its obligations while minimizing audit and penalty risk.

To stay compliant, at Booth P.C., we make sure your business maintains detailed and accurate records for every cryptocurrency transaction, since the IRS treats digital assets as property and expects full substantiation. These records include transaction dates and timestamps, the fair market value in U.S. dollars at the time of each transaction, the type of transaction (payment received, sale, exchange, staking, or mining income), wallet addresses and exchange accounts involved, transaction IDs (hashes), and documentation showing the business purpose of each transaction. At Booth P.C., we also help you retain exchange statements, wallet histories, invoices, contracts, and accounting reconciliations so your records are audit-ready and can support the income, deductions, and basis reported on your tax returns.

For IRS payroll and tax purposes, stablecoins are treated as property, not currency, even though they are pegged to the U.S. dollar. If your business pays employees or contractors in stablecoins, the IRS treats that payment the same as paying in any other property: the fair market value in U.S. dollars at the time of payment is taxable compensation, subject to income tax withholding, payroll taxes, and reporting on Forms W-2 or 1099, as applicable. Because most stablecoins are designed to track $1.00, valuation is usually straightforward, but compliance is not optional, and failure to properly withhold, deposit employment taxes, or report wages will trigger significant penalties, which is why at Booth P.C. ensure crypto recordkeeping is aligned with IRS rules.

At Booth P.C., we advise businesses that Form 8300 must be filed when they receive more than $10,000 in a single transaction or related transactions, and recent federal law has expanded the definition of “cash” to include certain digital assets, which brings large crypto payments squarely into the IRS’s reporting focus. When applicable, the form must be filed within 15 days of receipt and includes detailed information about the payer and the transaction, even if the payment is received in stablecoins or other crypto rather than dollars. Because IRS guidance and enforcement have increased in this area, at Booth P.C., our role is to determine when a crypto receipt triggers Form 8300 reporting, ensure timely and accurate filing, and help you avoid severe penalties that can apply for noncompliance or incomplete disclosures.

Generally, gains and losses from selling or exchanging crypto are reported on Form 8949 and summarized on Schedule D (or the business equivalent), while crypto received as payment for goods or services is reported as ordinary business income on the appropriate business return, such as Schedule C, Form 1065, or Form 1120/1120-S. If your business pays or receives crypto involving employees or contractors, at Booth P.C., we also ensure proper reporting on Forms W-2, 941, 1099-NEC, and related payroll filings, and we address any required information reporting tied to large transactions. At Booth P.C., our role is to match each type of crypto activity to the correct form, reconcile records with reported amounts, and correct or amend filings if needed to keep you compliant and reduce audit risk.

For companies, crypto tax reporting requires treating digital assets as property and accurately reporting all taxable events. This includes reporting crypto received as income at fair market value in U.S. dollars, tracking and reporting gains or losses when crypto is sold, exchanged, or used, maintaining detailed transaction records, and properly handling payroll and contractor payments made in crypto through W-2, 1099-NEC, and employment tax filings. Companies may also have information-reporting duties for large crypto receipts (such as Form 8300), and must disclose digital asset activity on business tax returns (such as Forms 1120 or 1065).

A Booth P.C. tax attorney helps with cryptocurrency tax compliance for businesses by translating complex and evolving IRS rules into a practical, defensible compliance strategy tailored to how your company actually uses digital assets. We review your crypto activity end to end, identify taxable events and reporting obligations, implement recordkeeping and valuation protocols, and ensure income, gains, payroll, and information reporting are correctly reflected on your returns. Most importantly, we address past noncompliance through amendments or disclosure strategies, respond to IRS inquiries or audits, and help reduce penalty and enforcement risk, allowing you to use cryptocurrency in your business with confidence that you are meeting federal tax requirements.

Poor record-keeping for cryptocurrency transactions exposes your business to significant IRS risk as you bear the burden to prove exclusions to income, basis, and deductions. Without adequate records, the IRS will assume the maximum amount of taxable income and disallow deductions and expenses. Usually, this will lead to inflated tax assessments, accuracy-related penalties, payroll tax exposure, Form 8300 violations, and extensive audits, especially since the IRS routinely obtains third-party data from exchanges and compares it against items reported on tax returns. At Booth P.C., we focus on reconstructing transaction histories when necessary, correcting filings, putting defensible systems in place and representing you before the IRS if you are audited.

Businesses ensure compliance with IRS crypto tax rules by treating digital assets as fully reportable property and implementing consistent tracking, reporting, and review processes. At Booth P.C., we help you identify all taxable crypto events, establish reliable record-keeping and valuation methods, align accounting and payroll systems with IRS requirements, and ensure the correct forms are filed for income, gains, compensation, and information reporting. We also proactively address prior gaps through amendments or disclosure strategies andwill defend you in an IRS examination.

Yes, businesses must fully comply with payroll tax rules when paying employees in cryptocurrency, and at Booth P.C., we ensure those obligations are handled correctly to avoid serious penalties. The IRS treats cryptocurrency compensation the same as paying wages, except for property, meaning the fair market value in U.S. dollars at the time of payment is subject to income tax withholding, Social Security and Medicare taxes, and must be reported on Forms W-2, 941, and related payroll filings.