FAQs

How does Velvetax work?

Velvetax is the easiest and smoothest way to calculate gains and losses from cryptocurrency transactions, regardless of which or how many exchanges you use to trade.

Import your transactions, mining, and spending, then in moments, you can download your gain and loss statements in PDF form. You can then save and print the filled 8949 form directly from Velvetax.

Will Velvetax work for me?

Sure. Velvetax.com will work for every cryptocurrency trader who must report income to the US tax authorities. We support the most popular exchanges. If we don't support an exchange you use, we offer a standard and universally compatible CSV import option, too. If you would like, contact us to add support for your exchange.

What if I received a notice from the IRS?

In 2019, the IRS sent tens of thousands of notices (6174, 6174-A, and 6173) to cryptocurrency traders politely reminding them to report income and losses on their returns.

It is believed that these letters were sent to heavily active cryptocurrency traders who used Coinbase during tax years 2013, 2014, and 2015.

If you received one of these letters, there is no need to panic. Chances are you simply need to amend your tax returns for any years you traded from 2013 through 2018. You also must file if you traded crypto in 2019.

A reminder: we are not lawyers, this is not legal or tax advice. If you are uncertain, it's best to contact a tax professional.

Can I talk to a human?

Of course! Chat now! The Velvetax support team is all US-based cryptocurrency experts.

While we cannot offer legal or tax advice and we are not CPAs, we will help you calculate your tax burden.

Think of Velvetax as your personal and powerful bitcoin calculator.

If I purchase goods with bitcoin, do I have to report the transaction to the IRS?

Yes. The IRS views "virtual currencies" as property. So if you purchase coffee or any other goods or services with bitcoin, the IRS considers the transaction a taxable event. View the 2014 IRS guidance here.

Do I file my taxes with Velvetax?

No. We simply calculate your cryptocurrency gains and provide you with the required IRS 8949 forms. You still use your existing tax professional or software to file your return. In other words, you can calculate your cryptocurrency basis and gains using Velvetax, and still use H&R Block, TurboTax, or TaxAct to file your complete tax return.

Velvetax is not associated with or endorsed by any exchanges or tax firms mentioned above, including but not limited to Coinbase, Gemini, TaxAct, or H&R Block. Exchanges mentioned may be registered trademarks of their respective owners.