1099-DA Is Broken: CP2000 Notices Are Coming This Fall
About this episode
Clinton Donnelly discusses the issues surrounding the IRS's Form 1099-DA and its implications for crypto investors and tax preparers.
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…
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TaxShield audit defense, Crypto gain calculation, crypto tax consultation
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