Your Tax Preparer Got Your Crypto Taxes Wrong: Who Is Liable?

If your CPA or tax preparer incorrectly reported your crypto, you still owe the IRS. But you may have recourse against the preparer.

You hired a CPA. They filed your return. The crypto was reported wrong - or not reported at all. The IRS sends you a notice. You owe $80,000 in additional tax, penalties, and interest. Your first question: is the CPA liable? The answer is nuanced - and the IRS does not care about the nuance. They want the money from you.

You Are Always Liable

Under §6012, the taxpayer is responsible for the accuracy of their return regardless of who prepared it. Hiring a professional does not transfer tax liability. If your CPA missed $200,000 in crypto gains, the IRS assesses the tax against you - not the CPA. This principle is absolute and non-negotiable.