A few months ago I came across my first crypto CPA. Bitcoin was trading north of $60,000 and there was a conference with many minted crypto millionaires. Most of the attendees were young and clueless about taxes. Since tax season was around the corner, all of these crypto millionaires were surely sitting on some huge capital gains. There was a CPA who handed out business cards at the conference. I estimate he probably gained 20-30 big ticket clients. Perhaps what was most remarkable was that there was not a single other CPA doing the same thing.
CPA’s are a conservative bunch by nature. Most are skeptical about cryptocurrencies. However, whether you are a believer in crypto or not, one thing is certain, it is now a multi-trillion dollar asset class. More importantly, it is a multi-trillion dollar asset class with few experienced professionals. It is an emerging industry where there are no established players. I certainly think that it could be a good career move to learn about crypto taxes especially if you are just starting out and you plan to have your own firm. For someone working at a big firm, it is probably not a useful skill. However, for someone looking to carve out a niche, it is probably not a bad idea to put yourself out there as a crypto CPA.
In order to look more crypto friendly to potential clients you might want to dabble in crypto even in small amounts.
Again, even if you are not a believer in crypto, this does not mean that you should ignore as a professional. After all, there is a crypto question on the first page of the 1040. Clearly, the IRS is paying attention. Reportedly, there are over 60 million crypto accounts in the United States. I estimate that there are only a handful of CPA’s who are well versed in how to serve clients with multiple sources of income (including staking) and multiple trades of various cryptos. With the advent of yield farming, how many CPA’s know how to handle this form of income?
If a CPA were looking to offer services to crypto clients my recommendation would be to join one of the Telegram groups. Some groups have a minimum net worth requirement and an extremely sophisticated clientele. If you enter one of these groups do not spam the group with your services. Try to talk about whatever the group is interested in. You can be sure in March someone in the group will post a question about taxes and you can offer your services.
