Digital assets tax services
Investors, enthusiasts and businesses dealing with digital assets often have difficulty managing the corresponding tax obligations. Challenges stem from the intricate and evolving nature of tax regulations, coupled with the lack of specialized, CPA-reviewed tools designed for large-scale operations. These obstacles increase the risk of errors and inefficiencies in tax compliance, particularly for enterprises like family offices and alternative investment funds.
RSM’s digital assets tax services team can help you navigate the complexities of crypto tax and the taxation of other digital assets. We address challenges from policy development and planning, to compliance and reporting obligations, by supporting our specialized knowledge with technology that fits your needs and earns your trust.
Our digital assets tax services team members are more than tax advisors—we're immersed in the blockchain and crypto ecosystem. In addition to tax specialists, our team includes professionals with deep knowledge of blockchain development, decentralized finance, validation and mining.
Our specialized knowledge covers:
- Token economics tax implications
- Legal frameworks for decentralized autonomous organizations
- International structuring
- Tax treatment of staking, mining and airdrops
- Revenue recognition
- Custody solutions
- Cost basis tracking
- State and local tax nexus
- Value-added tax implications for crypto nonfungible tokens
- Crypto broker reporting compliance
We use advanced crypto subledger and data solutions to automate transaction classification and cost basis calculations, ensuring accurate and efficient tax reporting. Whether launching a new blockchain, setting up your crypto organization or navigating compliance, our team offers the technical knowledge and industry experience to help you minimize risk and improve accuracy and efficiency.
RSM crypto tax services include
RSM has specialists who focus on U.S. income tax considerations for digital assets, offering guidance on income characterization, recognition timing, tax basis and sourcing for activities like airdrops, lending and staking. We help businesses implement accounting methods for optimal cash flow and tax compliance. We also provide tailored solutions for asset and wealth management, addressing fund structuring, U.S. trade or business considerations, and issues for tax-exempt and sovereign investors.
Decentralized systems lead to globally distributed entities and complex organizational structures. International tax laws continue to evolve, and global authorities are developing methodologies to govern the blockchain industry. RSM offers both local knowledge and global perspective to assist you with a broad range of international tax issues, including legal structuring, cross-border transaction flows, transfer pricing analysis and other structuring needs.
RSM helps you comply with indirect tax rules both domestically and globally where applicability can surprise a digital asset organization. RSM’s highly trained team helps you operate with confidence and provides technology solutions to support long-term compliance.
New reporting frameworks require payors and intermediaries in crypto transactions to report activities despite the decentralized nature of blockchain networks. This complicates identifying what is subject to these regulations and who must comply. Our team provides comprehensive solutions, including consulting and reporting services, to help businesses meet these obligations. We help ensure compliance with government regulations while offering excellent customer service for information returns to investors and other stakeholders.
Our private client services offer solutions tailored for high net worth individuals, including crypto investors, founders and executives. Our advisors provide comprehensive guidance to optimize your digital asset holdings, investments and overall wealth strategy. We help ensure meticulous compliance with complex reporting requirements while implementing sophisticated tax planning strategies. Our coordinated approach seamlessly integrates your digital asset transactions with your broader financial objectives for timely, efficient and strategic management of your tax obligations.
State tax rules for digital assets are rapidly evolving, affecting organizations’ state tax profiles, taxable income calculations, allocation and apportionment factors, and special entity designations. Our digital assets state and local tax team provides comprehensive services, from analyzing state tax profiles to advising on allocation and apportionment. We assist with tax calculation and conformity issues, review filing methodologies and support state tax controversies.
Proper tax accounting and tracking of cost basis for digital assets is complex. It requires a keen understanding of blockchain protocol mechanics and data automation solutions. RSM pairs advanced digital tools and extensive technical tax knowledge to help organizations efficiently and accurately meet their tax compliance requirements.
IRS audits can be intimidating, time-consuming and costly, especially in the realm of digital assets, where recordkeeping, obtaining robust guidance and understanding technical complexity can be arduous. RSM assists with mitigating audit risk and provides resolution through representation. Our tax controversy team has experience navigating crypto tax laws and representing clients through the most complex blockchain events.
Featured digital assets insights
From understanding key digital assets strategies and evolving regulatory guidance to exploring important resources for driving plans forward, we have insights to inform your next move.
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