Crypto Tax Firm Helps Reduce Client's IRS Audit Exposure by Over 90%

A Utah resident recently had their IRS audit exposure reduced significantly thanks to the help of Crypto Tax Made Easy and Securus Advisors. The client, who wishes to remain anonymous, initially faced a tax liability of approximately $1.55 million in unreported income from Poloniex withdrawals.

The dispute arose because the Poloniex exchange no longer supported U.S. trading, making it difficult for the client to obtain records of their transactions. As a result, the IRS assessed around $4.2 million in unreported income and capital gains.

Crypto Tax Made Easy reconstructed the client's blockchain and exchange records, tracing the net flows between personal wallets and exchanges. Securus Advisors represented the client before the IRS, presenting evidence that the disputed activity consisted of transfers between accounts the client already owned rather than new taxable income.

The matter was settled for approximately $148,000, about 9.5 percent of the original estimated exposure. According to the client, more than $80,000 had already been spent on prior attorneys and accountants before engaging Crypto Tax Made Easy and Securus Advisors.