Virtual currency sign on bonus

Forum|Forum|2 years ago
January 22, 2024
1 reply
21 views

A client of mine just informed me that in 2022 a company he started working for gave him 40K in virtual currency as a sign on bonus. It was not on his W2. I told him to check if the company can amend his W2 but they gave him an odd reason why they couldn't and to file it as other income. I believe he should have paid fica taxes and am contemplating on how to properly report this.

ProSeries Professional

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Best answer by itonewbie

That's what F.4852 is for.

Before filing that with the return, you should advise your client to speak with the employer again, point them to Notice 2014-21, and let them know the IRS could come knocking on their door if F.4852 is used to report the income as required.

Hopefully, that would be enough to change their mind.

itonewbieAnswer

Level 15

That's what F.4852 is for.

Before filing that with the return, you should advise your client to speak with the employer again, point them to Notice 2014-21, and let them know the IRS could come knocking on their door if F.4852 is used to report the income as required.

Hopefully, that would be enough to change their mind.

---------------------------------------------------------------------------------Still an AllStar

itonewbie

Level 15

Virtual currency has been and remains on the IRS' LB&I campaigns. If I were the employer, I'd really get my act together to avoid bigger problems.

---------------------------------------------------------------------------------Still an AllStar

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