Missing and incomplete data in the tax return - Kryptoanwalt.de

What needs to be considered?

Taxpayers can often be confronted with missing or incomplete data when filing tax returns and documenting income, particularly in connection with the taxation of cryptocurrencies. This can have a significant impact on the correct tax treatment and lead to problems with the tax office. This article explains the challenges that can result from missing or incomplete data and what needs to be considered.

Challenges due to missing and incomplete data

Insufficient evidence

If complete records are not available for certain transactions, this can lead to problems when calculating profits or losses. The tax office expects detailed information on all relevant transactions, and the absence of this data can lead to profits not being recognized or incorrectly taxed.

Increased risk during examinations

During a tax audit, the lack of relevant information can lead to a suspicion of tax evasion. The tax office has the right to make inquiries or tax estimates in the event of insufficient data, which may be unfavorable.

Complications in meeting deadlines

Missing data can lead to deadlines for submitting tax returns or responding to requests for information not being met.

Procedure for missing or incomplete data

Careful documentation

Investors should keep comprehensive records for every transaction. This includes not only purchase and sale data, but also wallet addresses, the trading platform and all relevant fees. Structured storage of this information facilitates subsequent accounting.

Subsequent procurement of information

If it is subsequently discovered that data is missing, make every effort to retrieve this information as quickly as possible. Many crypto exchanges provide transaction histories that can be requested retrospectively and included in the documentation.

Estimating data

In certain cases, you may need to use estimates to replace missing information. However, these estimates should be comprehensible and well documented in order to provide the basis for your calculations in the event of an audit.

Advice from experts

If you encounter difficulties or are unsure how to deal with missing data, we can help you find the safest way forward. Our lawyers specializing in this area can help you overcome the challenges associated with incomplete data and find the best way to document it. Qualified advice can also help you to identify and avoid potential legal problems at an early stage.

Preventive measures against missing data

Regular review of the documentation

Regularly review your records to ensure that all data is complete and accurate. This can be particularly important before the filing date for tax returns or for important crypto transactions.

Use backup systems

Use digital tools to record your transactions, such as specialized software or apps for crypto accounting. These systems often also offer export functions to create reports or prepare the data for your tax return.

Education & training

Keep up to date with changes in tax legislation and the legal framework for cryptocurrencies. If necessary, take part in training courses or webinars to expand your knowledge of tax requirements and the documentation of crypto transactions.

Conclusion

The existence of missing and incomplete data can have a significant impact on the tax treatment of cryptocurrencies. Proper documentation and a proactive approach to resolving any discrepancies are therefore essential. Seeking professional advice is strongly recommended to clarify uncertainties and ensure the correct handling of missing data. Investors should be aware that a transparent and cooperative approach with the tax office is crucial to minimize potential problems and prevent legal risks. By taking preventative measures, they can effectively fulfill their tax obligations and maintain their financial security.

This information serves as a general guideline and cannot replace individual tax advice from our experts. The tax treatment may vary depending on your specific situation and the current tax regulations. It is strongly recommended that you contact our lawyers to clarify your personal tax situation and comply with the legal requirements.