Criminal tax preparation · A practical guide
Crypto Tax Investigations: Building a Traceable Transaction Record
A wallet balance does not explain a tax history. Organize the transactions, source records and actual responsibilities so counsel and financial professionals can evaluate the facts.
By Joseph De Gregorio · Federal Sentencing Reduction and Early Release Strategist
Founder and President, Sentencing Advocacy Group
Published November 5, 2026
Request a Private Case Review · (646) 588-8182
Distinguish a tax inquiry from other crypto allegations
Digital-asset tax questions may concern receipts, disposals, basis, income or reporting. Those are different from allegations about investor funds, platform operations or fraud against customers. Identify the actual agency communication and scope rather than assuming every crypto case is the same.
The IRS treats digital assets as property for federal tax purposes and identifies records taxpayers should maintain. Applying those rules to a particular transaction requires qualified advice, especially when the history spans several tax years or different reporting regimes.
Create a wallet and platform map
List exchanges, hosted accounts and wallets relevant to the agreed review, with dates of use, record availability and the person who controlled them. Use secure identifiers in the working file. Never place seed phrases, private keys or account credentials in a website inquiry or ordinary shared spreadsheet.
A blockchain address does not, by itself, explain beneficial ownership or why a transfer occurred. Record the basis for an attribution and distinguish verified control from an inference. Counsel and forensic specialists decide what conclusions the evidence supports.
Preserve original exports and calculation versions
Keep original exchange exports, transaction identifiers, timestamps and available statements. Record time zones and any normalization performed during analysis. Retain both raw data and a separate working file so later corrections can be traced.
Different platforms may describe the same movement differently. Transfers between a person’s own accounts, sales, purchases, compensation and other receipts need to remain distinguishable. Do not label every incoming transfer as income or every outgoing transfer as a deductible loss.
Document valuation and basis questions
For each unresolved item, identify the asset, quantity, date, relevant source and the specific missing information. A current market price is not a substitute for the value relevant to a historical transaction. Counsel and qualified tax professionals should determine the applicable treatment.
If records are incomplete because a platform closed or access was lost, document the gap and available recovery sources. Do not invent acquisition costs or use an unexplained estimate to make a spreadsheet balance.
Connect transaction facts with individual preparation
An employee paid in tokens, an investor and a platform founder may have different responsibilities and records. Joseph can organize the person’s chronology, employment history, communications inventory and documented corrective work without assuming identical roles.
Any tax-loss or restitution analysis should be handled as its own workstream. SAG supports the agreed factual and personal preparation; it does not provide forensic tracing opinions, tax-return advice or legal conclusions about the transaction history.
Sources and related preparation
IRS digital-asset tax and recordkeeping guidance. Source checked November 5, 2026. Counsel must evaluate the rules and facts applicable to your case.
Can I send wallet credentials through the inquiry form?
No. Do not share private keys, seed phrases or account credentials. Agree with counsel and the relevant specialists on a secure, appropriately limited records process.
A defined engagement with Joseph De Gregorio
Retain qualified federal defense counsel first for an investigation or criminal charge. Agree on the scope, records, authorized recipients and review dates before SAG’s work begins. Counsel retains legal advice, strategy and submissions. SAG can deliver an indexed personal record, a chronology, a factual gap list and an agreed preparation schedule. An engagement does not automatically make every communication privileged; counsel determines the appropriate arrangements.
SAG serves clients nationwide from Freehold, New Jersey, with travel arranged for cases. Tell Joseph your current stage and next deadline. Do not send case documents or sensitive allegations through the initial website form.
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SAG is not a law firm and does not provide legal or tax advice. Courts and agencies determine outcomes. No sentence, charging decision or release date is guaranteed.