Top 5 Questions to Ask a Crypto Tax Professional Near Me Before Hiring Them

Cryptocurrency may have opened the door to exciting new opportunities for traders and investors, but it has also brought many tax rules that most people struggle to navigate. It’s easy to make mistakes that could cost you money or worse, trigger IRS scrutiny. That’s why finding the right crypto tax professional near me is essential. However, the challenge lies in knowing how to choose the right expert for your needs. In this article, we’ll walk you through the top six questions you should ask before hiring a crypto tax professional to ensure your taxes are handled properly.

1. Why Hire a Crypto Tax Professional Near Me?

While online tax software and remote services can seem appealing, there are benefits to working with a local professional who understands federal and state tax laws. A crypto tax professional near you is better equipped to navigate state-specific rules, local filing deadlines, and regional tax nuances that online-only services might overlook.

In addition, having someone nearby allows for face-to-face consultations, where complex details can be explained clearly without miscommunication. Whether you’re a day trader, a long-term investor, or someone dabbling in NFTs and staking, a local crypto tax professional can offer tailored advice and help you ease your worries knowing that your taxes are handled with precision and accountability.

Question 1: What Experience Do You Have With Cryptocurrency Taxes?

Not all accountants are equipped to handle cryptocurrency taxation. Asking about a professional’s direct experience with digital assets is the first step in determining if they’re the right fit.

A qualified crypto tax professional should be able to share examples of clients they’ve worked with, be it traders, long-term holders, or businesses dealing in crypto. They should also be familiar with IRS guidelines on virtual currencies, including reporting requirements for exchanges, wallets, and decentralized platforms.

If their answers seem vague or they’ve only handled a handful of cases, that’s a red flag. The more experienced your tax professional is with crypto-specific scenarios, the better they’ll be at ensuring compliance while uncovering opportunities to minimize your tax liability.

Question 2: How Do You Stay Updated on Changing Crypto Regulations?

The cryptocurrency landscape changes faster than almost any other financial market. New IRS rulings, shifting global regulations, and technologies like DeFi or NFTs all impact how your crypto activities are taxed.

That’s why it’s crucial to ask a crypto tax professional how they stay informed. Do they attend industry conferences, complete continuing education courses, or belong to professional tax associations that focus on digital assets? A proactive advisor should demonstrate a commitment to staying ahead of regulatory changes and explain how those updates might affect your tax strategy.

If they can’t point to specific methods of keeping current, it may signal they’re not fully prepared to handle the fast-moving world of crypto taxation.

Question 3: What Tax Strategies Do You Use to Minimize Liability?

One of the biggest advantages of hiring a crypto tax professional is gaining access to smart strategies that legally reduce your tax burden. The right expert should be able to explain techniques like tax-loss harvesting, optimizing holding periods for favorable long-term capital gains rates, and choosing the most beneficial cost-basis method (such as FIFO, LIFO, or HIFO).

They should also tailor these strategies to your specific situation, whether you’re an active day trader making dozens of transactions a week or a long-term investor holding digital assets for years. A knowledgeable professional will help you build a forward-looking plan that keeps more money in your pocket while ensuring compliance with IRS rules.

Question 4: How Do You Handle Complicated Transactions Like DeFi, NFTs, or Staking Rewards?

Crypto taxes aren’t just about buying and selling Bitcoin anymore. With the rise of decentralized finance, non-fungible tokens, and staking rewards, reporting requirements have become significantly more complicated.

A skilled crypto tax professional should be able to clearly explain how income from staking or yield farming is taxed, how NFT trades are classified, and how liquidity pool transactions are reported. If they struggle to provide straightforward answers or only focus on simple buy-and-sell scenarios, they may not be the right fit.

Complex crypto activities require detailed knowledge, and the right professional will know how to handle them so that nothing slips through the cracks during tax season.

Question 5: What Is Your Fee Structure and What Does It Cover?

Before committing to any tax professional, it’s essential to understand exactly what you’ll be paying for. A trustworthy crypto tax professional should be upfront about their fee structure, whether they charge hourly, offer flat-rate packages, or use a tiered system based on the complexity of your portfolio.

Be sure to ask what’s included in those fees: will they just prepare and file your return, or does the cost also cover consultations, tax planning advice, and audit support? Hidden costs or vague explanations can be a red flag. Clarifying the fee structure early will help you avoid surprises and ensure the services provided match your needs and budget.

2. Conclusion

By asking the five questions outlined above, you can ensure that your advisor is both competent and trustworthy. Taking the time to vet a professional not only helps you stay compliant with IRS rules but can also save you money and provide peace of mind.

Visit Onchain Accounting and use these questions as a checklist to get in touch with one of our experts who will handle your crypto taxes with accuracy, confidence, and care.