Clinton Donnelly

A crypto trader can know every trade they made and still have no idea what their records say. That is where the tax problem begins. One missing cost basis. One transfer treated like a sale. One exchange file that does not match the wallet history. Suddenly, the tax software decides your gain is much higher than reality. Helpful little robot, quietly building you a fake tax bill. Charming. This is why full-service gain calculation matters. CryptoTaxAudit reviews the records, CSVs, wallets, transfers, and cost basis issues behind the number. Because the number is not automatically right just because software produced it. We have seen full-service gain calculations reduce taxable gains by thousands. Sometimes millions. If your crypto tax report feels wrong, trust your gut. Question it before you file it.

@WTFnition Big Brother may not need to watch everything. He just needs exchanges, wallet addresses, and blockchain analytics to line up badly enough that a taxpayer gets a letter. That’s the part people underestimate.

@CryptoTaxFixer Big brother is coming

If the IRS can connect your exchange account, wallet addresses, and blockchain activity, is crypto privacy real anymore?

@MustardPat1 Some people see blockchain as privacy. The IRS sees it as a permanent public ledger with exchange records attached. Once those two worlds connect, the privacy argument gets a lot harder to make.

@CryptoTaxFixer Nope. The complete opposite 🫣

@TaxesLinda Scary if you’re unprepared. The IRS doesn’t need to understand every crypto user perfectly. They just need enough data to spot mismatches, ask questions, and make you prove the numbers. That’s where people get into trouble.

@CryptoTaxFixer Scary!

XPubs are the nightmare scenario because they can expose far more than one transaction. That’s why the issue isn’t just “did you report the sale?” It’s whether the IRS can reconstruct the whole financial trail and then ask you to explain it. Crypto privacy isn’t dead, but it’s definitely not what most people think it is.

@CryptoTaxFixer They will soon require all our XPubs. This is what Blockchain was really meant for. Buckle up.

For civil tax fraud, there is effectively no statute of limitations for assessing the tax. If a return is fraudulent, the IRS can go back indefinitely. Criminal tax cases are different. They generally have limitation periods, often six years depending on the charge and when the offense was completed.

@CryptoTaxFixer So fraud has no statue of limitations?

🚨I just saw a news article where the Department of Justice prosecuted someone for tax fraud involving income that was not reported back in 2011, 2012, and 2013. They were just indicted now. These are tax years from roughly 14 years ago. So yes, crypto investors are terrified of the past. They cannot go back and easily fix everything. They are scared, and understandably so. That is exactly the problem. It is the IRS’s usual modus operandi to create a showpiece case. They burn someone publicly, make an example out of them, and use that to terrify everyone else. But the problem is that it often terrifies people into staying under the rock instead of coming forward and getting clean. That is why I want to create a tax amnesty program for crypto traders. We should not be creating a generation of people who become well-trained in tax fraud. There may be around 30 million people involved in crypto, and a significant number of them may have reporting problems from prior years. The goal should be to help people come into compliance, not scare them deeper into hiding.

@darwinscott423 💯

@CryptoTaxFixer Agree completely

That is not what § 7701 says. Section 7701(a)(9) says “United States,” when used geographically, includes the States and the District of Columbia. It does not say Washington, D.C. only. Section 7701(a)(10) says “State” includes D.C. where necessary. That does not delete the 50 states from the Code. This “United States only means D.C.” argument has been rejected as frivolous. It is not a winning tax position.

The term united state means ONLY Washington DC. According to Section 7701(a)(9)-(10). The US Supreme Court has said that you can not assume that things are within the definition of the term, if it is not specifically listed there, especially when it come to taxes and all inferences and doubts go against the Government t’s power to tax. Watch my 10 minute legal overview of this on top of Step 1 here: freedomlawschool.org/7-steps If I am wrong, show me and I will pay you $50,000:

@PaluzziTodd If only. The IRS is very good at going back in time when they think you owe them money. They are not nearly as enthusiastic when the old records show losses.

@CryptoTaxFixer Will they go back in time and give me money for all my losses lol

@PeymonFreedom @Render2XX @CryptoTaxAudit @1_Stupid_Fuck @UnincorpAssoc My point is simple: the court ruled against you, and the Ninth Circuit did not reverse that result. People reading this should understand the difference between delaying collection, continuing litigation, and actually winning on the law. Those are not the same thing.

Clinton your information is half right, half wrong. The2008 tax renewal judgment of 90K that you mention expired and went away without me paying anything to IRS. Fo r the 2001 through 2026 case that the judge deliberately and knowingly ignored term law and facts and the 9th circuit in a one paragraph decision rubber stamped it, I have not paid IRS anything and we are back in court right now about that case.

No, that is not correct. “United States” does not mean only Washington, D.C. for federal income tax purposes. The Code and regulations apply to U.S. citizens and residents, and courts have rejected these arguments repeatedly. On Title 26: whether a title is classified as positive law or non-positive law does not make the underlying statutes invalid. The Internal Revenue Code was enacted by Congress. These arguments are not new. They are frivolous, and they do not protect taxpayers.

@CryptoTaxFixer @CryptoTaxAudit Incorrect - United States is DC only in terms of irs definitions and you never answered about a Title 26 being a positive law so your information is not trustworthy at all

@CryptoTaxFixer Didn't Trump say he was going to abolish the IRS? Waiting...

@PeymonFreedom had a court judgment in 2008 obligating him to pay about $90,000, which he ultimately had to pay. Then again in 2014, the IRS took him to court, not a criminal case, but a civil case, for not paying taxes for the years 2001 through 2006. The judge ruled that he had failed to pay and that he owed taxes. He appealed that decision to the U.S. Ninth Circuit Court of Appeals. In 2023, the appeals court agreed with the lower court. He still had to pay the taxes. His strategy did not work.

@CryptoTaxFixer @CryptoTaxAudit @PeymonFreedom @1_Stupid_Fuck @UnincorpAssoc do you agree with this?

Title 26 is commonly described as a non-positive-law title of the U.S. Code. That does not mean the Internal Revenue Code is not law. The Internal Revenue Code was enacted by Congress, and federal courts have repeatedly rejected the argument that income tax laws are invalid because of “positive law” wording. This is the kind of word game that gets taxpayers penalized, not protected.

@CryptoTaxFixer @CryptoTaxAudit Is Title 26 is a positive law?

In the Internal Revenue Code, “person” includes an individual. See 26 U.S.C. § 7701(a)(1). And Treasury Regulation § 1.1-1 says Section 1 imposes income tax on every individual who is a citizen or resident of the United States. So if the argument is that U.S. citizens and residents are not “individuals” for income tax purposes, that argument has already been rejected as frivolous.

@CryptoTaxFixer @CryptoTaxAudit What is the definition of “individual “?

The IRS having leadership problems does not mean the tax law disappears. Treasury still oversees the IRS, DOJ can still prosecute tax crimes, and the statutes still exist. On the statute of limitations point, that depends heavily on what was charged. Civil tax fraud can remain open indefinitely, and criminal tax cases have separate limitation rules depending on the offense and when the conduct was completed. That is exactly why people should not rely on internet shorthand when old tax years are involved.

@CryptoTaxFixer Strange given it’s has no commissioner No authority Given statues of limitation is prior 14 yrs

Then you know exactly how hard it is to get people to fix tax problems before they become disasters. Most people do not avoid compliance because they have a master plan. They avoid it because they are overwhelmed, embarrassed, scared, or missing records. That is why the process has to be clear enough that people will actually use it.

@CryptoTaxFixer Good luck - I worked in a private office doing taxes for about a decade from my 20s to 30s

@darwinscott423 💯😅

@CryptoTaxFixer trust and crypto in the same sentence is a tough one these days - but it is needed very bad

I think you’re right. That is exactly why trust matters so much here. If people hear “amnesty” from a random social media post, many will assume it is a trap. But if the process is explained by a trusted tax professional, with clear rules, clear limits, and a real path to resolution, more people will come forward. The IRS cannot fix this with fear alone. Education and trust have to be part of the process.

@CryptoTaxFixer I believe most folks would still see it as a trap - if exposed to it on social media and not in person with a trusted person