TFTC: A Bitcoin Podcast #731: Fixing Broken Bitcoin Tax Policy with Andrew Gordon
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Mar 25, 2026 Andrew Gordon, managing attorney (JD, CPA) specializing in crypto tax and IRS audits since 2014. He breaks down the IRS's aggressive new audit questionnaire and risky perjury exposure. He critiques Form 1099-DA reporting, highlights privacy and self-custody concerns, and argues for reforms like a de minimis exemption and a voluntary disclosure program.
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IRS Two Page Crypto Audit Form Raises Perjury Risk
- The IRS is issuing a new two-page crypto audit form that demands detailed answers and a signature under penalties of perjury.
- Andrew Gordon says the form’s scope spans all crypto activity from first use through the audit year, expanding audits beyond typical year-specific limits.
Retain Counsel Immediately When Audited For Crypto
- If you receive a crypto-focused IRS audit form, retain counsel immediately to preserve attorney-client privilege.
- Andrew Gordon recommends weighing options like negotiating a different IDR response or limited cooperation based on exposure.
1099-DA Will Dramatically Expand IRS Enforcement Visibility
- The IRS will soon receive line-by-transaction data from U.S. exchanges via Form 1099-DA, which vastly increases enforcement breadcrumbs.
- Gordon expects more audits and automated notices as the IRS uses that data and AI to identify discrepancies.