Are you worried about a CP2000 letter for your crypto trades? Starting in 2026, the IRS will receive detailed 1099-DA reports from exchanges — and they’re likely to trigger thousands of CP2000 notices.

These reports often show gross proceeds with no cost basis, making it look like you made massive gains even when you didn’t. Clinton Donnelly explains what to expect — and how to protect yourself.

📉 If you don’t respond correctly, you could be taxed on phantom gains. Clinton Donnelly, a leading crypto tax expert, explains:

- Why CP2000 letters often follow flagged wallet activity

- How the IRS misinterprets crypto transfers as income

- What supporting documentation you’ll need to respond

- A real case: how we resolved a $300K crypto tax dispute

- When to amend a return vs. when to defend it

Whether you're dealing with a CP2000 letter now— or want to stay ahead of one in 2026 — this video is essential viewing for crypto traders.

💼 Need help responding?👉 Join the Tax Prep Waiting List: https://www.cryptotaxaudit.com/tax-prep-waiting-list

CryptoTaxAudit helps crypto traders:

• Calculate accurate gains

• Defend against IRS audits

• File tax returns designed to survive scrutiny

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📜 Disclaimer: The content in this video is for educational and entertainment purposes only. While we aim to provide accurate and up-to-date information about cryptocurrency taxation, this is not intended as legal, tax, or financial advice. Always consult with a qualified tax professional to ensure compliance with IRS regulations and accurate reporting of your cryptocurrency transactions.