In Matt Metras’ excellent article on tax reporting for clients who receive settlements from the Celsius bankruptcy, he says “It’s unclear if this section could apply to digital asset bankruptcies for a variety of reasons outside the scope of this article.” Matt provides an example of the IRS’ preferred method of accounting for settlement proceeds as published on the Taxpayer Advocate’s website. Matt also notes that the TAS tax tip lacks any citations to substantial authority. It may or may not be taxpayer friendly. The articles published by many cryptocurrency exchanges are also citation free and, after a cursory review, seem geared in a larger sense toward helping exchange users account for the settlement accurately on the exchange itself. In this article, I would like to look at the forest of tax law principles that the Celsius bankruptcy settlement puts into play rather than any specific tax reporting tree. Welcome to the jungle.
Beyond Borders: Essential Tax Planning Insights for Advising Foreign-Invested Partnerships
Dominique Molina, CPA MST CTS
Cross-border ventures can unlock exciting destinations for growth and investment, but they also come with some heavy-duty baggage — think IRS paperwork, withholding headaches, and estate tax landmines. If you’re a tax planner gearing up for this global expedition (especially if it’s your first trip), this guide is your passport to smoother travels.
