Yes — you may still owe taxes even if you haven’t converted your cryptocurrency to cash.

The IRS treats cryptocurrency as property, not currency. This means any disposal event (selling, trading, or spending crypto) can create a taxable gain or loss, even if you never withdrew it to your bank account.

However, simply buying and holding crypto in your wallet without trading or using it does not create a taxable event. Our specialists help you determine which of your transactions are taxable and ensure you report them correctly to avoid future IRS penalties.

NFTs (Non-Fungible Tokens) are generally taxed in two ways:

• For creators: Selling or minting NFTs generates ordinary income based on the sale price at the time of the transaction.

• For investors: Buying and later selling an NFT at a higher value results in a capital gain — similar to cryptocurrency trading.

Tax treatment also depends on whether the NFT represents digital art, a collectible, or a utility asset. We provide precise guidance to help NFT creators and investors stay compliant while optimizing for deductions and capital gains rates.

If you experienced losses on your crypto trades, you can deduct those losses to offset other capital gains — and in some cases, even ordinary income (up to $3,000 per year).

Properly documenting your losses through detailed transaction records (trades, wallet addresses, exchange statements) is essential.

Our team helps you categorize and report losses accurately, so you can reduce your overall tax bill and carry forward unused losses to future years when applicable.

Both crypto mining and staking are considered taxable income at the fair market value of the coins on the day you receive them.

• For miners, this is treated as self-employment income, meaning you may also owe self-employment tax.

• For stakers, rewards are typically taxed as ordinary income, and any future sale of those coins can generate capital gains.

We help you determine the correct classification, calculate your tax obligations, and identify deductible business expenses (such as equipment, electricity, and internet costs) to minimize your taxable income.

Yes — the IRS has been increasing its focus on cryptocurrency reporting and can audit past transactions for up to six years (or longer if fraud is suspected).

Even small or old trades can trigger questions if they weren’t properly reported. At All State Tax Resolution, we help clients reconstruct historical crypto activity, correct prior filings through amended returns, and defend against IRS audits or penalties. Being proactive now is the best way to avoid larger problems later.