Tax advisors share some tax-day tips for crypto holders

Did you know it’s possible for expats to mostly get out of paying U.S. taxes? We spoke with four tax professionals to get this and other tax-day tips.

Have you finished your 2023 taxes? April 15 was filing day in the United States, so to honor the day, we checked in with four tax professionals to get their best tips for American cryptocurrency holders and expatriates. 

An extension to tax filing — which moves your due date from April 15 to Oct. 15 — is free for the asking. Just note that the six-month extension does not extend the payment date. It is tempting to succumb to the allure of the extra months, but do you increase your odds of audit? There are differing views about what prompts an audit, but there is no data suggesting that tax returns filed on extension are more likely to be audited.

If anything, I would argue that filing on extension may actually decrease your audit risk. After all, many returns filed right at the deadline are filed in haste, some carelessly, and that can bring on an audit. Extensions can allow time to gather records, consider reporting alternatives, and get professional advice. After all, tax returns must be signed and filed under penalties of perjury, so it’s best to file accurately so you don’t have to amend later.

Read more