Cryptocurrency Tax & Accounting Legal Services

Comprehensive Crypto Tax Legal Counsel

McDermott provides sophisticated tax planning and legal advisory services for digital asset taxation, combining deep tax law expertise (founded in 1934 with a focus on tax law) with cutting-edge cryptocurrency knowledge from the largest full-time crypto-exclusive team in the industry.

Core Services

Digital Asset Tax Planning & Compliance

• Cryptocurrency Tax Structuring: Digital asset taxation analysis, crypto fork treatment, staking income characterization, DeFi yield taxation, NFT tax treatment
• IRS Crypto Reporting: Form 1099-DA compliance, virtual currency transaction reporting, digital asset disclosure requirements
• Corporate Crypto Tax: Tax-efficient M&A structuring for crypto companies, corporate reorganizations involving digital assets, tax-free exchanges, international tax planning for blockchain businesses
• Investment Fund Crypto Tax: Crypto fund structuring, hedge fund taxation for digital assets, UBTI planning for crypto investments, offshore crypto fund structures, carried interest treatment

Regulatory Tax Compliance

• Virtual Currency Licensing Tax Implications: BitLicense tax considerations, Money Transmitter License tax obligations, state-by-state regulatory tax navigation
• Securities Analysis for Tokens: SEC securities classification tax consequences, CFTC derivatives tax oversight
• FinCEN/BSA Tax Compliance: Tax implications of AML/KYC requirements, virtual currency reporting under Bank Secrecy Act

Tax Controversy & IRS Defense

• Crypto Tax Audits: IRS crypto audit defense, tax appeals for digital asset matters, voluntary disclosure programs
• Tax Litigation: Digital asset tax litigation, penalty abatement for crypto reporting errors
• Transfer Pricing: Cross-border crypto transaction transfer pricing, international tax treaty application to digital assets

Additional Tax Services

• Executive Compensation Tax: Stock options vs. token options, crypto equity alternatives, Section 409A compliance for token-based compensation
• Partnership & LLC Tax: Partnership allocations for crypto mining/staking operations, Section 704(c) issues with crypto contributions
• State & Local Tax: Nexus analysis for crypto businesses, sales and use tax on NFTs and digital goods, property tax on digital assets
• International Tax: GILTI/FDII for crypto companies, Subpart F issues, withholding tax on cross-border crypto transactions, FATCA/CRS compliance for digital assets

Why McDermott for Crypto Tax

• Industry Leadership: Largest full-time crypto-exclusive legal team, led by Partner Joseph B. Evans (crypto lawyer since 2013)
• Chambers Band 1 Ranked: Top-tier recognition in Crypto-Asset matters
• Deep Technical Understanding: Blockchain protocols, consensus mechanisms, cryptographic security, and tokenomics expertise
• Regulatory Relationships: Engaged by Wyoming Select Committee to draft first-of-its-kind crypto bankruptcy legislation, demonstrating policy leadership

Target Clients

Cryptocurrency exchanges, DeFi protocols, blockchain infrastructure providers, NFT platforms, crypto custody providers, digital asset funds, stablecoin issuers, Web3 startups, crypto mining operations, and traditional financial institutions entering crypto markets.