Tax Authority Inquiry
About Your Crypto?
You received a letter from the tax authority requesting information about your crypto activities? No reason to panic, but a reason to act. Here is a step-by-step guide on how to respond correctly.
30 min · Free · No commitment
Robert & Johannes · personally review your data
Since DAC8 and the automatic exchange of information, tax authority inquiries are increasing:
Why the Tax Authority Asks About Crypto
The tax authority has various ways to learn about your crypto activities. These triggers most commonly lead to a formal inquiry:
DAC8 Data Exchange
Starting 2026, crypto platforms automatically report transaction data to tax authorities. The tax authority cross-references this data with your tax return.
Bank Transactions
Larger deposits from crypto exchanges to your bank account can raise flags. Banks are required to report suspicious transactions.
Incomplete Tax Return
When crypto income is missing from your tax return or statements are contradictory, the tax authority requests an explanation.
How to Respond to a Tax Authority Inquiry Correctly
The correct sequence is critical. Follow these steps:
Read the letter
What exactly is being asked? What is the deadline? What time period?
Contact a tax advisor
Engage a tax advisor before taking any action on your own
Evaluate voluntary disclosure
If income was not declared previously: clarify BEFORE responding
Prepare documentation
Compile and prepare your crypto transaction history
Respond on time
Submit a complete response or request a deadline extension
Important: Never respond to a tax authority inquiry without a tax advisor. The tax authority asks targeted questions. Every statement can have tax consequences.
Mistakes You Should Avoid
Disclosing too much
Only answer what is specifically being asked. Voluntarily providing additional information can open up new areas of investigation.
Providing too little
Incomplete responses lead to follow-up inquiries and prolong the process. Or worse: the tax authority estimates your income.
Missing the deadline
Letting the deadline pass is the biggest mistake. It is better to request a deadline extension.
Responding without a tax advisor
A tax authority inquiry is a formal proceeding. Without tax advice, you risk unnecessary disadvantages.
What TX-Partner Prepares for Your Response
TX-Partner does not provide legal or tax advice. TX-Partner prepares your crypto accounting so that your tax advisor can work with it immediately.
Transaction History
Complete documentation of all crypto transactions for the requested time period. Chronological, with fiat values, across all wallets and exchanges.
Reconstruct Missing Data
When exchange exports are no longer available, TX-Partner reconstructs the history from on-chain data.
Tax-Advisor-Ready
The documentation is structured so that your tax advisor can directly amend the tax return or respond to the inquiry.
Inquiry Response professionally answer.
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