Why your offshore crypto is no longer safe from the taxman
David Klasing, a tax attorney from California, recalls meeting a client whose early cryptocurrency holdings had grown to $700 million in eight years and, having never reported a dime of it, was losing sleep they’d be jailed for tax fraud.
Klasing says he recommended the client complete a voluntary disclosure, a penalty-reducing program for taxpayers who wilfully fail to report foreign assets. By coming forward proactively, they would avoid a criminal prosecution.
“That’s the fix for anybody that has large amounts of unreported crypto,” Klasing said in an interview. “I have people coming to me on a daily basis who are now reading about new reporting requirements the government’s trying to put in place with foreign…
