Most crypto investors think taxes are a once-a-year event. The IRS disagrees. If you sold crypto at a gain in the first half of 2026, the IRS expected an estimated tax payment by June 15 — the Q2 deadline. No exchange withholds taxes for you, so unless you sent a payment yourself, nothing was sent. That's how investors rack up underpayment penalties without ever missing "Tax Day." As an EA, this is one of the most common — and most avoidable — penalty triggers I see on crypto returns. The safe harbor rule most investors miss: → Pay in at least 100% of last year's total tax (110% if your AGI was over $150K), spread across the year, and you're penalty-proof — no matter how big this year's gains are. → Or pay at least 90% of what you'll actually owe for 2026. → Next checkpoint: the Q3 estimated payment is due September 15. If you took profits in H1 and haven't made an estimated payment yet, you still have time to limit the damage before September. Drop your question below 👇 — or book a free 15-min call if this applies to you: calendly.com/samuel-empowercapital/15min — Samuel Oduro, EA | Empower Capital | empowercapital.co

🚨 IRS ALERT — MAY 6, 2026 The IRS released Notice 2026-20 in March — and if you hold crypto on Coinbase, Kraken, or any custodial exchange, this directly affects how your cost basis gets reported. Here's what it means in plain English: Starting with 2026 transactions, brokers are required to report both your gross proceeds AND your adjusted cost basis on Form 1099-DA. But Notice 2026-20 gives taxpayers extended transition relief — meaning you still have time to rely on your OWN records when identifying which lots you're selling, rather than defaulting to your broker's records. Why this matters: → Brokers default to FIFO (first in, first out) — which often triggers the HIGHEST possible tax bill → If you've held BTC or ETH at multiple price levels, choosing HIFO (highest cost first) can legally eliminate tens of thousands in taxable gains → This relief window is temporary — once it closes, your broker's method locks in Action items for right now: 1. Export your complete transaction history from every exchange you use 2. 2. Identify your cost basis method (FIFO, HIFO, LIFO, or specific ID) 3. 3. If you haven't documented your method yet — do it before December 31, 2026 This is one of the most important compliance windows of the year. Don't let it close without acting. Questions? Drop them below or book a free call: calendly.com/samuel-empowercapital/15min — Samuel Oduro, MBA, EA | IRS Enrolled Agent | Former EY & PwC | empowercapital.co

Most crypto investors only think about taxes in April. The ones who build real wealth think about them in May. Here's the move almost no one talks about: mid-year tax-loss harvesting. You don't have to wait until December. Right now — May — is one of the best times to audit your portfolio for positions sitting at a loss. You have 7+ months to reallocate before year-end, and markets have already moved significantly since January. As an EA, I see clients leave tens of thousands on the table every year simply because they didn't review their unrealized losses mid-year. Here's what to look for right now: → Any position worth less than what you paid? That's a harvestable tax loss. → Losses offset gains dollar-for-dollar before the IRS gets a cent. → No wash sale rule on crypto (for now) — you can sell and immediately rebuy the same coin. Tax Day just passed. That makes this the single best window to start planning for next April — before most people even think about it. What coin or position are you currently sitting on a loss in? Drop it below 👇 — Samuel Oduro, EA | Empower Capital | empowercapital.co

Cost basis. Every time. When the IRS reviews a crypto return, they go straight to one question: "Can you prove what you paid for this asset?" If you can't, they default to $0 — which means your entire sale proceeds become taxable gain. Here's what I see constantly as an EA: → Investor buys 1 ETH for $2,000 in 2023. Sells for $3,500 in 2025. → Actual gain: $1,500. Tax owed: $225 (at 15% LTCG rate). → Missing records? IRS assumes cost basis = $0. Tax owed: $525. → That's $300 extra in taxes — on a single trade. Multiply that across 50, 100, or 500 transactions and you see the problem. The fix is simple but most investors skip it: ✅ Export your full transaction history from every exchange you've used ✅ Choose your cost basis method (FIFO, HIFO, or specific ID) and stick to it ✅ Document it — not just in your head, but on paper the IRS can see After Big Four tax work at EY and PwC, this is still the #1 fixable mistake I see on crypto returns. Drop your question below 👇 — what exchange or wallet is giving you the most headaches with records? — Samuel Oduro, EA | Empower Capital | empowercapital.co

🚨 IRS ALERT — APRIL 16, 2026 A bipartisan bill called the PARITY Act was re-introduced in Congress last month and it could significantly change crypto tax rules for every investor in this community. Here's what's in the bill and what it means for you: • WASH SALE RULES COMING TO CRYPTO — The bill proposes closing the crypto wash sale loophole. Right now, you can sell crypto at a loss and immediately buy it back to claim the tax loss. If this passes, you'd have to wait 30 days before repurchasing, just like stocks. Tax-loss harvesting strategies would need to change. • STAKING REWARDS — POTENTIAL 5-YEAR DEFERRAL — Miners and validators could elect to defer taxes on staking rewards for up to 5 years OR until they sell the asset. If you earn staking income, this is significant relief. • STABLECOINS TREATED LIKE CASH — The bill would create a deemed-basis rule for regulated dollar-pegged stablecoins used for payments. Routine stablecoin transactions (like paying for goods or services) would no longer be taxable events. • WASH SALE TRADEOFF — The bill gives significant relief (staking deferral, stablecoin clarity) in exchange for closing the wash sale loophole. For most long-term investors, this is a net positive. My take as an EA: This bill is still in discussion draft form — it is NOT law yet. But it's bipartisan, which gives it real momentum. If you rely heavily on crypto tax-loss harvesting, now is the time to harvest losses BEFORE this potentially becomes law. Don't wait. Questions? Drop them below 👇 or book a free call: calendly.com/samuel-empowercapital/15min — Samuel Oduro, EA Empower Capital | empowercapital.co