#irs-reporting
IRS reporting requirements for cryptocurrency and investments
Form 8865 makes U.S. persons report controlled foreign partnerships, property contributions, and 10-percentage-point interest changes. Missing it triggers $10,000 per partnership per year, plus a 10% foreign tax credit haircut and stacking 30-day penalties up to $50,000.
U.S. multinational groups with $850 million or more in consolidated revenue must file Form 8975 with one Schedule A per tax jurisdiction. This guide walks through the four-part threshold test, the Schedule A line items, the Pillar Two transitional safe harbor that now relies on CbCR data, and the five filing mistakes that most often trigger audits in the 2026 cycle.
Section 165(i) lets disaster-affected taxpayers deduct a current-year casualty loss on the prior year's return, turning an 8-to-16-week refund into rebuild cash. A practical guide to Form 4684, the six-month election deadline, the 2026 OBBBA changes, and the recordkeeping that holds up under IRS audit.
Form 1099-DA, the IRS's first dedicated information return for digital asset broker transactions, is being issued for tax year 2025 during the 2026 filing season. A practical guide to the broker definition, the DeFi carve-out, the 2025 gross-proceeds-only phase-in versus 2026 basis reporting, the wallet-by-wallet basis tracking rule, and how to reconcile the form to your own records before filing.
Form 5498 reports IRA contributions, rollovers, Roth conversions, and the December 31 fair market value, and arrives in late May after you have already filed. A box-by-box reading of the fourteen lines, how to reconcile each with Forms 1099-R, 8606, and 5329, and the specific traps that trigger CP2000 notices and the 6% excess-contribution penalty.
Form 8283 is required when total noncash charitable contributions exceed $500. Above $5,000, donors need a USPAP-compliant qualified appraisal and three signatures on Section B; over $500,000 the full appraisal attaches to the return. Section 170(o) can claw the deduction back if the charity disposes of tangible property within three years, and the 40% gross valuation misstatement penalty has no reasonable-cause defense.
Form 8886 discloses reportable transactions to the IRS. Missing it triggers a Section 6707A penalty up to $200,000 per year for entities and keeps the assessment statute open indefinitely on listed transactions under Section 6501(c)(10). This guide breaks down the five categories, the penalty math, filing mechanics, and the foreign currency loss trap that catches accidental filers.
Form 8886 carries a 75% penalty for undisclosed listed transactions, capped at $200,000 for entities, with no reasonable cause defense and a statute that stays open until one year after you file. Here's who must file, what counts as reportable, and how to handle late disclosure.
Innocent spouse relief under IRC Section 6015 lets divorced or separated taxpayers escape joint liability for a spouse's tax misconduct via Form 8857. This guide covers the three types of relief—traditional, separation of liability, and equitable—plus deadlines, evidence requirements, and the common reasons the IRS denies claims.
Section 1366(d) caps S-corporation loss deductions at stock basis plus direct shareholder debt, and Form 7203 is how the IRS verifies the math. A working guide to suspended losses, phantom capital gains on distributions, the $25,000 open-account debt rule, why personal guarantees do not create basis, and how the Regulation 1.1367-1 ordering rules decide which losses survive each year.
Section 1061 recharacterizes carried interest gains from long-term to short-term unless the underlying asset was held more than three years — a 17-point federal rate swing for hedge, PE, and VC fund managers. A practitioner guide to applicable partnership interests, Worksheet A and B reporting, the capital interest exception, and 2026 planning moves.
Section 170(h) lets landowners deduct the value lost when they place a permanent conservation restriction on real property, but the IRS has labeled high-ratio syndicated structures listed transactions and now disallows over 90% of the claimed deduction in court. This guide explains the four-part qualification test, the 2.5x basis cap under Section 170(h)(7), the 40% strict liability penalty, Form 8283 requirements, the six-year statute of limitations, and the 2026 IRS settlement window.
