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1099-DA Is Broken: CP2000 Notices Are Coming This Fall
The IRS rolled out Form 1099-DA, and Clinton Donnelly says the first version is already creating serious problems for crypto investors and tax preparers.
In this episode, Clinton explains why the 1099-DA collects the data the IRS wants, but fails to help taxpayers file correctly. The information may be there, but it is hidden, buried, and difficult to enter properly on a tax return.
He also explains why confusion around the 1099-DA could lead to a high error rate, mismatched IRS records, and a wave of CP2000 notices for crypto investors this fall.
In this episode:
Why the 1099-DA is harder to use than a normal 1099
Why some tax preparers may refuse crypto returns
Why Clinton expects a roughly 75 percent error rate
How a missed or mismatched 1099 can turn into a CP2000 notice
Why CP2000 notices may be based on wrong IRS assumptions
Why taxpayers should respond and push back on numbers they do not believe
Resources:
TaxShield audit defense:
https://www.cryptotaxaudit.com/taxshield?afmc=spotify
Crypto gain calculation:
https://www.cryptotaxaudit.com/crypto-gain-calculation?afmc=spotify
Book a consultation:
https://www.cryptotaxaudit.com/crypto-tax-consultation?afmc=spotify
About Clinton Donnelly:
Clinton Donnelly is an Enrolled Agent and founder of CryptoTaxAudit, known as the Crypto Tax Fixer. He helps crypto investors understand IRS notices, crypto tax reporting problems, and audit defense.
Disclaimer:
This episode is for educational and informational purposes only and does not constitute legal, tax, or financial advice. Tax laws and IRS procedures can change, and every situation is unique. Consult a qualified tax professional before taking action.
View all episodes
By Clinton DonnellyThe IRS rolled out Form 1099-DA, and Clinton Donnelly says the first version is already creating serious problems for crypto investors and tax preparers.
In this episode, Clinton explains why the 1099-DA collects the data the IRS wants, but fails to help taxpayers file correctly. The information may be there, but it is hidden, buried, and difficult to enter properly on a tax return.
He also explains why confusion around the 1099-DA could lead to a high error rate, mismatched IRS records, and a wave of CP2000 notices for crypto investors this fall.
In this episode:
Why the 1099-DA is harder to use than a normal 1099
Why some tax preparers may refuse crypto returns
Why Clinton expects a roughly 75 percent error rate
How a missed or mismatched 1099 can turn into a CP2000 notice
Why CP2000 notices may be based on wrong IRS assumptions
Why taxpayers should respond and push back on numbers they do not believe
Resources:
TaxShield audit defense:
https://www.cryptotaxaudit.com/taxshield?afmc=spotify
Crypto gain calculation:
https://www.cryptotaxaudit.com/crypto-gain-calculation?afmc=spotify
Book a consultation:
https://www.cryptotaxaudit.com/crypto-tax-consultation?afmc=spotify
About Clinton Donnelly:
Clinton Donnelly is an Enrolled Agent and founder of CryptoTaxAudit, known as the Crypto Tax Fixer. He helps crypto investors understand IRS notices, crypto tax reporting problems, and audit defense.
Disclaimer:
This episode is for educational and informational purposes only and does not constitute legal, tax, or financial advice. Tax laws and IRS procedures can change, and every situation is unique. Consult a qualified tax professional before taking action.