Cryptocurrency Tax Evasion Defense Lawyer

Searching for the “Best Cryptocurrency Tax Evasion Lawyer”?

At Kimura London & White LLP, we have extensive experience navigating the complex legal landscape surrounding cryptocurrency taxation, providing you with a robust defense tailored to your unique circumstances.

We typically do not handle cases involving less than $100,000 in damages, as the legal costs may outweigh the potential recovery. This allows us to focus our resources on achieving the best outcomes for significant, high-stakes matters.

Why Choose Kimura London & White LLP for Cryptocurrency Tax Defense

Kimura London & White LLP, based in Irvine, California, is a premier law firm with a reputation for excellence. Recognized as an Inc. 5,000 firm and featured in Forbes and Fortune, we bring a blend of innovation and legal acumen to every case we handle. Our attorneys are leaders in their fields, offering unparalleled expertise and dedication to achieving favorable outcomes for our clients.

Meet Darrell P. White

Darrell P. White, a founding partner of Kimura London & White LLP, is a nationally recognized business trial lawyer. With a focus on high-stakes, complex business disputes, Mr. White has successfully recovered over $21 million in settlements for his clients and defended cases involving disputes worth far more. His clientele includes:

• Billion-dollar corporations

• Multinational businesses

• Entrepreneurs navigating complex legal challenges

Mr. White's role as co-counsel in the high-profile case defending Roger Ver (“Bitcoin Jesus”) underscores his expertise in cryptocurrency-related legal matters. He combines strategic thinking with exceptional courtroom skills, making him a sought-after advocate in cases involving cryptocurrency tax evasion.

Awards and Recognition:

• 2024 SuperLawyer

• Listed in Best Lawyers since 2021

• Recipient of “America's Top 50 Lawyers” honors

With his deep understanding of business and cryptocurrency law, Mr. White provides clients with a decisive edge in navigating the complexities of tax-related disputes.

The Rising Challenge of Cryptocurrency Tax Evasion

The IRS categorizes cryptocurrency as property, subjecting every transaction—whether buying, selling, trading, or using crypto—to taxation. This classification means that:

• Capital gains taxes apply to all transactions.

• Accurate reporting is essential to avoid penalties.

The digital and decentralized nature of cryptocurrency makes it inherently complex to track. The IRS, however, has invested heavily in tools and techniques to identify tax evasion, including:

• John Doe summonses: Used to compel major exchanges like Coinbase and Kraken to disclose customer transaction data.

• Blockchain analytics: Leveraged to trace digital asset transactions and identify unreported income.

The passage of the Infrastructure Investment and Jobs Act (IIJA) in late 2022 further tightened regulations, requiring brokers to disclose client transactions exceeding $10,000. Non-compliance can lead to severe consequences, including civil penalties and criminal charges.

How We Protect Our Clients

At Kimura London & White LLP, we provide comprehensive legal support to clients facing cryptocurrency tax evasion allegations. Our services include:

1. Interpreting Cryptocurrency Tax Laws

Cryptocurrency tax regulations are continually evolving. Our attorneys stay at the forefront of these changes, ensuring that our clients understand and comply with their obligations. We offer guidance on:

• Mining and staking income

• Trading and investment gains

• Cross-border transactions involving digital assets

2. Representation During Audits

IRS and California Franchise Tax Board (FTB) audits can be intimidating and complex. Our legal team:

• Prepares detailed responses to audit inquiries

• Presents technical challenges related to tracking digital transactions

• Mitigates potential penalties through strategic advocacy

In one recent case, we successfully reduced a client's penalties by demonstrating the IRS's reliance on incomplete transaction data.

3. Negotiating with Authorities

When clients owe back taxes or face penalties, our attorneys engage directly with tax authorities to negotiate settlements. For example, we recently secured a 50% reduction in penalties for a client accused of underreporting significant crypto gains.

4. Defending Against Criminal Charges

Criminal allegations of tax evasion require a sophisticated defense strategy. We:

• Challenge evidence presented by the IRS

• Highlight inconsistencies in blockchain analysis

• Build compelling arguments to protect our clients' rights and reputations

The Stakes Are High

With Bitcoin's market value exceeding $42,000 at the close of 2023, cryptocurrency remains a lucrative yet highly scrutinized asset class. IRS Notice 2023-34 outlines stringent requirements for digital asset reporting, further complicating compliance for individuals and businesses. Failure to adhere to these regulations can result in:

• Significant financial penalties

• Federal investigations

• Long-term damage to professional and personal reputations

Proactive Steps to Protect Yourself

Avoiding allegations of cryptocurrency tax evasion begins with proactive measures:

• Accurate Record Keeping: Maintain comprehensive records of all cryptocurrency transactions, including timestamps, amounts, and associated fees. Proper documentation is your first line of defense in an audit.

• Understanding Tax Implications: Familiarize yourself with federal and state regulations governing digital assets. IRS Notice 2023-34 provides critical guidance on tax compliance for cryptocurrency transactions.

• Consulting Experts: Engage a qualified cryptocurrency tax attorney and CPA to ensure accurate and timely tax filings. Expert advice minimizes the risk of errors and ensures compliance.

Why You Need Kimura London & White LLP

Cryptocurrency tax evasion cases are among the most complex legal challenges, requiring a nuanced understanding of both tax law and blockchain technology. At Kimura London & White LLP, we offer:

• Deep expertise in cryptocurrency markets and tax regulations

• Proven success in negotiating favorable outcomes

• A track record of defending clients against high-stakes allegations

Our firm's unique combination of business acumen and legal expertise ensures that our clients receive the strongest possible defense. Whether you're facing an audit, negotiating back taxes, or defending against criminal charges, we're here to protect your interests.

Contact Us Today

If you're facing allegations of cryptocurrency tax evasion, don't navigate the complexities of tax law alone. Contact Kimura London & White LLP today to schedule a consultation. Let us provide the guidance and advocacy you need to protect your rights and secure your future.