Tax Authority Inquiry

Tax Authority Inquiry
About Your Crypto?

A letter from the tax authority about your crypto activities? No reason to panic, but a reason to act: here is how to respond correctly, step by step.

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Background

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:

01_DAC8_DATA

DAC8 Data Exchange

From 2026, crypto transactions are recorded for reporting to tax authorities, with the first report following in 2027. The tax authority cross-references this data with your tax return. How DAC8 reports exactly →

02_BANK_DATA

Bank Transactions

Larger deposits from crypto exchanges to your bank account can raise flags. Banks are required to report suspicious transactions.

03_TAX_RETURN

Incomplete Tax Return

When crypto income is missing from your tax return or statements are contradictory, the tax authority requests an explanation.

Step by Step

How to Respond to a Tax Authority Inquiry Correctly

The correct sequence is critical. Follow these steps:

1

Read the letter

What is asked, what deadline, what time period?

2

Contact a tax advisor

Engage a tax advisor before taking any action on your own

3

Evaluate voluntary disclosure

Undeclared income? Clarify BEFORE responding

4

Prepare documentation

Prepare the history across all exchanges and wallets

5

Respond on time

Submit a complete response or request a deadline extension

Important: coordinate your response to a tax authority inquiry with your tax advisor. The tax assessment belongs in their hands; TX-Partner delivers the complete data foundation.

Common Mistakes

Mistakes You Should Avoid

Answering without structure

Answer precisely what is specifically being asked, complete and traceable. Coordinate the scope of your response with your tax advisor.

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.

Going in without preparation

A tax authority inquiry is a formal proceeding. The tax assessment belongs in your tax advisor's hands; the prepared data foundation comes from TX-Partner.

How TX-Partner Helps

What TX-Partner Prepares for Your Response

TX-Partner is the independent partner for crypto accounting: no legal or tax advice, but the data foundation your tax advisor can work with immediately. The 6-question catalog from real inquiries is in the blog Tax Authority Asks About Crypto.

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.

Ready?

Inquiry Response professionally answer.

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Frequently Asked Questions

What We Get Asked Most

A tax authority inquiry is a formal notice. You must respond within the stated deadline, typically 2-4 weeks. If you need more time, you can request a deadline extension.
If you do not respond on time, the tax authority can estimate your income (AO §162 / BAO §184). A complete, on-time response replaces the estimate with your actual figures.
Strongly recommended. A tax advisor knows the formal requirements and can assess what you need to disclose and what you do not. TX-Partner prepares the crypto accounting so your tax advisor can work with it immediately.
Missing data is not a reason to skip responding. TX-Partner can reconstruct crypto histories from on-chain data, even when exchange exports are no longer available.
If you have not declared crypto income so far, a voluntary disclosure may be advisable. This must be evaluated BEFORE responding to the tax authority inquiry. Discuss this with a tax advisor.