Safe Harbor Allocation Plan: What You Need to Know (And Why It's Not Too Late)
Jan 16, 2025Safe Harbor Allocation Plan: What You Need to Know (And Why It's Not Too Late)
First off, a big thank you to everyone who signed up for the Safe Harbor Allocation Plan through our website.
Thousands of you took the critical step of completing your required inventory by the end of December 2024.
If you haven’t signed up yet, don’t worry—it’s still possible to get on track in January 2025. Here’s how.
Why the Safe Harbor Allocation Plan Matters
The Safe Harbor Allocation Plan is your shield against the complexities of crypto tax reporting under the new IRS regulations.
It ensures your records are compliant and gives you a structured way to document your holdings, including a snapshot of your portfolio as of December 31, 2024.
While the official deadline has passed, there’s still time to make things right.
Did you miss the Deadline? Here’s What to Do
If you didn’t complete your inventory by the end of last year, don’t panic. The plan allows for some flexibility, and even now, you can take these steps:
- Sign Up for the Plan
Visit our website at CryptoTaxAudit.com/1099 to enroll in the Safe Harbor Allocation Plan. - Complete Your Inventory
Even if it’s a couple of weeks late, documenting your holdings now is still crucial. This inventory captures the value of your assets as of December 31, 2024. - Reconstruct Missing Data
If you’re audited, we can help reconstruct your 12/31/2024 inventory and make the case in tax court to accept a late submission of the plan. Having the inventory on file significantly strengthens your position. - Track 2025 Transactions
Start tracking all your crypto transactions from January 1, 2025, onward. Having accurate records will simplify any potential audits or IRS inquiries.
Clearing Up Confusion About Delays
There’s been some misunderstanding about delays to the Safe Harbor Allocation Plan or related requirements. Let’s be clear:
- The Delay Does Not Apply to the Snapshot or Inventory
The IRS extension announced last year only impacts exchanges' implementation of specific identification rules. It does not change Safe Harbor requirements. - The Program Remains Unchanged
The Safe Harbor Allocation Plan is still fully operational and vital for ensuring compliance.
Why Acting Now is Essential
Even if you missed the original deadline, completing your inventory and signing up for the plan gives you a stronger defense if the IRS comes calling. Without these steps, you risk:
- Increased scrutiny during audits.
- Difficulty reconstructing past transactions.
- Missing out on critical compliance protections.
Taking action now ensures you’re prepared, even if the IRS raises questions later.
Get Started Today
Don’t wait—there’s still time to safeguard your crypto holdings and stay compliant. Visit CryptoTaxAudit.com/1099 to sign up for the Safe Harbor Allocation Plan and complete your inventory today.
Protect your investments, simplify your taxes, and stay one step ahead. It’s not too late to take control of your crypto tax obligations. Let’s get it done!
