The Clinton Donnelly Show

FinCEN has withdrawn two proposals involving unhosted wallets and crypto mixing. Clinton Donnelly of CryptoTaxAudit discusses the proposed reporting requirements for banks and financial institutions and why he sees the withdrawals as a shift in regulatory direction.

The discussion covers KYC information, suspicious activity reports (SARs), Tornado Cash, and Clinton’s comparison with the SEC and CFTC. He also shares his interpretation of the Trump administration’s approach to reducing regulation.

FinCEN’s official announcement:
https://www.fincen.gov/news/news-releases/fincen-announces-withdrawals-proposed-digital-asset-related-rules

Learn how CryptoTaxAudit can help:
https://www.cryptotaxaudit.com/

Crypto tax preparation and services:
https://www.cryptotaxaudit.com/tax-crypto-pricing

This content is for educational and informational purposes only and does not constitute tax, legal, or financial advice. Tax rules depend on individual facts and circumstances. Consult a qualified professional about your situation.

Can you replace a tax return you've already filed with the IRS instead of submitting an amended return?

In this episode of The Clinton Donnelly Show, Clinton Donnelly explains how superseding tax returns work and why filing an extension may provide taxpayers with more flexibility when their tax calculations are not yet finalised.

Clinton discusses a recommendation from National Taxpayer Advocate Erin Collins, shared at a meeting he attended in Washington, DC.

The discussion covers:

• What a superseding tax return is.

• How superseding returns differ from amended returns.

• How an IRS filing extension can affect the deadline for submitting a replacement return.

• Why this approach may be useful for crypto investors waiting on more accurate capital gains calculations.

• How CryptoTaxAudit uses superseding returns when working with clients.

For taxpayers dealing with complicated cryptocurrency transactions, having additional time to finalise gain calculations may make this filing strategy worth considering.

About CryptoTaxAudit

CryptoTaxAudit specialises in cryptocurrency tax calculations, tax reporting and IRS audit defense.

Website: https://www.cryptotaxaudit.com/

Speak with a crypto tax expert: https://www.cryptotaxaudit.com/contact

Disclaimer: This episode is for educational and informational purposes only. It does not constitute legal or tax advice. An extension to file does not extend the deadline to pay taxes. Individual circumstances and IRS requirements may vary.

Crypto tax software can produce questionable results when transaction history or cost basis is incomplete.

In this episode, Clinton Donnelly shares two real client examples involving missing crypto records.

In one case, records from an old exchange were unavailable. Trade confirmation emails and Coinbase records helped support that incoming Bitcoin represented a transfer of the client’s own assets rather than taxable income. Working

In another case, crypto tax software calculated approximately $140,000 in gains. The client believed the figure was closer to $90,000. After a professional gain calculation, the result was $89,000, with Clinton estimating roughly a $20,000 tax difference based on the tax rate discussed in the example. Working

Learn more about CryptoTaxAudit:
https://www.cryptotaxaudit.com/

Crypto tax pricing:
https://www.cryptotaxaudit.com/tax-crypto-pricing

This episode is for educational and informational purposes only and does not constitute tax, legal or financial advice.

In this focused excerpt from a longer Q&A, Clinton Donnelly speaks with Michael Raanan of Landmark Tax Group about what happens after a substantial IRS tax bill arrives.

Michael explains why the first step is to open the notice, check the deadline, and determine whether the amount is actually correct. They then discuss how the IRS evaluates a taxpayer’s ability to pay and when options such as payment plans, penalty abatements, offers in compromise, or hardship status may apply.

They also discuss why promises to settle IRS debt for “pennies on the dollar” can be misleading, and Clinton shares a crypto example involving Bitcoin used as collateral that resulted in a significant tax bill.

This episode is a focused excerpt from a longer conversation with Michael Raanan.

Related article:
https://www.cryptotaxaudit.com/blog/resolve-100000-irs-tax-bill

Full original discussion:
https://youtu.be/ELBgtO67oYw

CryptoTaxAudit:
https://www.cryptotaxaudit.com/

Landmark Tax Group:
https://landmarktaxgroup.com/

Disclaimer: This episode is for educational purposes only and does not constitute tax or legal advice. Tax outcomes depend on each taxpayer’s individual facts and circumstances. Consult a qualified professional about your situation.

Clinton Donnelly of CryptoTaxAudit discusses the BitBank sanctions story, access to the U.S. dollar system, and the risks associated with holding crypto on an exchange.

The discussion covers correspondent banking, potential effects on customer deposits and withdrawals, and the distinction between exchange solvency risk and sanctions exposure. Clinton also references FTX before turning to the wider role of the U.S. dollar in international payments.

He also shares his views on BRICS, alternatives to the U.S. dollar, and Bitcoin’s possible role in international trade. These potential future developments are discussed as analysis rather than established outcomes.

Book a private crypto tax consultation:
https://www.cryptotaxaudit.com/crypto-tax-consultation

U.S. Treasury source:
https://home.treasury.gov/news/press-releases/sb0632

Visit CryptoTaxAudit:
https://www.cryptotaxaudit.com/

Disclaimer: This episode is for educational and informational purposes only and does not constitute legal, tax, or financial advice.

Form 1099-DA provides transaction information to the IRS. How useful is it for taxpayers and their preparers?

Clinton Donnelly of CryptoTaxAudit discusses customer experiences with the forms for the 2025 tax year, including document length, first-year cost-basis reporting, different exchange formats and Form 8949 boxes.

He also considers crypto income reporting estimates, questions around study methodology and a hypothetical scenario involving filing errors and audits. He closes with his views on clearer data summaries for taxpayers and preparers.

Crypto tax preparation support:
https://www.cryptotaxaudit.com/

In this episode:
00:00 Taxpayer and preparer experiences
00:23 IRS reporting and taxpayer clarity
00:43 Document length, cost basis and form formats
01:43 Reporting estimates and IRS implementation
03:24 Data summaries and closing views

Could fewer IRS employees mean fewer crypto audits? Clinton Donnelly, founder and CEO of CryptoTaxAudit, discusses IRS staffing changes, automation, and what they could mean for cryptocurrency investors.

This episode covers workforce reductions, planned customer service hiring, AI-assisted systems, and audit selection. Clinton also discusses CP2000 and CP2501 notices and shares CryptoTaxAudit’s approach to tax return preparation and its reported client audit outcomes.

Client results and comparisons discussed are figures reported by CryptoTaxAudit.

Have questions about your crypto taxes or an IRS letter?

Visit CryptoTaxAudit
Get help with an IRS letter
Contact the team

Follow the podcast for more discussions about crypto taxes, IRS notices, and audit preparation.

TIGTA found that more than 14,000 IRS employees on administrative leave retained access to one or more sensitive systems.

Clinton Donnelly explains what this potential security risk could mean for crypto holders, including what 1099-DA and exchange data may reveal, why private-wallet balances are not automatically visible to the IRS, and how a virtual mailbox may help protect your home address.

The report did not establish that a material breach occurred or that the retained access was misused.

Read the full article:
https://www.cryptotaxaudit.com/blog/can-tax-authorities-be-trusted-with-crypto-data

Learn more:
https://www.cryptotaxaudit.com/

Missing crypto transaction records can make it difficult to calculate and support your cost basis accurately. When exchange data is incomplete or no longer available, crypto tax software may calculate gains using incomplete information.

In this episode, Clinton Donnelly explains ways missing crypto records may be reconstructed using supporting evidence such as trade confirmation emails.

He also shares a client case involving Bitcoin transferred from a closed exchange to Coinbase. Although the original exchange transaction history was unavailable, email confirmations were used alongside Coinbase records to support that the incoming Bitcoin represented a transfer of the taxpayer’s own assets rather than taxable income.

Clinton also discusses reasonable good-faith estimates, the Cohan rule, and the use of reasonable estimates when complete documentation is unavailable.

Need help with missing crypto records, gain calculations, or an IRS crypto issue?
CryptoTaxAudit specializes in complex crypto tax reporting, gain calculations, and IRS audit defense.

https://www.cryptotaxaudit.com/

Disclaimer
This episode is for educational and informational purposes only and does not constitute tax, legal, or financial advice. Every taxpayer’s circumstances are different. Consult a qualified tax professional regarding your specific situation.

California’s proposed billionaire wealth tax could impose a one-time tax of up to 5% on covered wealth above $1 billion.

In this episode, Clinton Donnelly breaks down what that could mean in practice, including the potential need to liquidate investments, the additional tax consequences that can follow, and why some wealthy residents may decide to leave California altogether.

Clinton also looks at the longer-term impact of wealth leaving the state, how California determines tax residency, and why simply moving or changing your mailing address may not be enough.

The episode covers:

• California’s proposed 5% billionaire wealth tax
• The liquidity problem created by a large wealth-tax bill
• Capital gains triggered by selling assets
• Why wealthy residents may leave California
• The potential effect on future state tax revenue
• California residency audits
• The Bragg residency factors
• What it actually takes to establish that you have left California
• A real client example involving California residency issues while living abroad

Disclaimer: This episode is for general educational and informational purposes only and does not constitute legal, tax, investment, or financial advice.