Possibly, but documentation is critical.
- I know the diversity of cryptocurrency, and finding some details may be difficult.
- The first step is that you claimed it on your tax return.
- Now DOCUMENT IN WRITING the steps you went through to attempt to get the most accurate cost basis. This means on the date you acquired it down to the minute.
- If this information is not available, describe what you did.
Cryptocurrency is kind of the new kid in town, and the IRS watches it with a suspicious eye. You would initially get a simple letter prior to any investigation. You would need your explanation at that time.