Have you noticed any difference between tax prep software? Like does using TurboTax vs H&R Block vs FreeTaxUSA change how fast the IRS processes things?

I haven't noticed any consistent difference in processing speed between tax software options. I've used TurboTax, H&R Block, and FreeTaxUSA over the years, and the refund timing seemed to depend much more on when I filed and what was on my return rather than which software I used. All the major tax software providers use the same electronic filing system to submit to the IRS, so once your return is accepted, the processing time should be the same regardless of which program you used to prepare it. The IRS doesn't prioritize returns based on which software was used.

Totally agree. And the really annoying thing is when it says "We cannot provide any information about your refund" and tells you to call, but then when you call they just tell you to check the website. It's a never-ending cycle of frustration!

This is extremely helpful, thank you! One question - when creating this transaction log, should I calculate the USD value of the BTC at each transfer point? Or just focus on the final gain/loss numbers?

Yes, you should definitely record the USD value of the BTC at each transfer point. This is crucial because the IRS considers each crypto-to-fiat or crypto-to-crypto exchange a potentially taxable event, and those values establish your cost basis. When you transfer BTC to your forex broker and convert to fiat, you technically have a taxable event based on whether your BTC gained/lost value since purchase. Then your forex trading creates separate taxable events. Finally, when converting back to BTC, there's another taxable event. Recording the USD values at each step creates a clear audit trail that properly separates the crypto transactions from the forex transactions.

Forex trades under Section 988 (which is the default for most retail forex traders) are NOT subject to wash sale rules. They're treated as ordinary income/loss rather than capital gains/losses. However, if you elected to use Section 1256 treatment (which most retail traders don't), then different rules would apply. Make sure you're consistent in your treatment though. You can't cherry-pick which trades fall under which section to maximize tax benefits.

Thanks for clearing that up! I've definitely been treating everything as Section 988 since I'm doing short-term day trading, so I should be good. I'll override the flag in my tax software and make a note explaining that these are forex trades under Section 988 and therefore exempt from wash sale rules.

Did you find any good way to automate the collection of exemption certificates? We're struggling with getting schools to promptly provide their exemption documentation, and it's creating a bottleneck.

We built a simple upload portal as part of our onboarding process where organizations couldn't list events until they uploaded their exemption certificates. We also created state-specific templates with instructions that made it easier for them to provide exactly what we needed. For schools specifically, we found that being very clear about the consequences of not providing documentation (i.e., we'd have to charge their students/parents sales tax) motivated them to respond faster. Most schools already have these certificates on file, so it's just a matter of getting the right person to share them.

Great question about physical presence. While marketplace facilitator laws create nexus for the online sales portion, the physical location of events can indeed trigger additional tax considerations. In some states, there might be amusement taxes, entertainment taxes, or special venue taxes that apply based on where the event physically takes place. These are separate from sales tax on the tickets themselves and may have different filing requirements.

Can I just file my state taxes separately even if I normally do them together with my federal? I use TurboTax and I'm not sure how to separate them after I've already entered all my info for both.

Absolutely! Most tax software allows you to file state separately from federal. In TurboTax, after completing both returns, you can choose to e-file just the state portion. Look for filing options during the final steps - there should be checkboxes for federal and state that you can select independently. If for some reason your software doesn't allow separate filing, you can also go directly to your state's tax website. Many states offer free filing options for basic returns, and you can enter your information there independently from your federal return.

Unfortunately, yes. Paper returns are taking 6-12 weeks minimum to process this year, and that's if everything goes perfectly. My brother was in your situation last year and ended up waiting almost 4 months for his refund after paper filing. The non-filer issue seems to flag returns for additional manual review too.

What about staking rewards? Are those taxed when received or when sold?

Staking rewards are generally taxed as ordinary income when you receive them, based on their fair market value at that time. They establish your cost basis for those coins. Then, when you eventually sell those staking rewards, you'll calculate capital gains/losses based on the difference between your selling price and that initial value when received. This is similar to how mining is treated - taxed as income when received, then potentially subject to capital gains tax when eventually sold.

Form 8938 is for "specified foreign financial assets" - the IRS hasn't definitively stated that crypto qualifies for this. Most tax pros are taking the conservative approach and including crypto if it's held on foreign exchanges and meets the threshold. Better safe than sorry with FBAR and 8938 reporting!