Question
Wu bought and sold crypto several times during the year. He tries to log his transactions but isn't sure he got them all. He brought
Wu bought and sold crypto several times during the year. He tries to log his transactions but isn't sure he got them all. He brought you the information he has. As his tax preparer, how would you proceed?
A)Suggest that Wu use a crypto calculator to gather the data needed to accurately report his transactions.
B)Report the transactions Wu is certain about on Form 8949, using the records he provides. Then, attach an electronic filing note (e-file note) stating that the information provided is incomplete. The IRS will notify Wu of any discrepancies.
C)Use the transactions Wu is certain of and complete Form 8949. Use that information to prepare the return.
D)Suggest that Wu make his best estimate of the missing transactions and report those amounts in addition to the transactions he is certain of.
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