The Challenge: An individual who casually traded cryptocurrency received a terrifying CP2000 notice from the IRS claiming they owed $8,000. The crypto exchange had reported their gross sales to the IRS, but not the original purchase price (cost basis). The Moorhead Financials Solution: * We stepped in as their Enrolled Agent, contacting the IRS to halt any collection actions.
- We reconciled their fragmented digital wallet transactions to prove their actual cost basis, showing they actually took a net loss on their trades. The Result: We reduced the $18,000 tax bill to $0. By carrying forward their capital losses against their W-2 income, we actually triggered an $800 IRS tax refund.