If you've ever received a CP2000, Letter 566, or any other IRS letter mentioning crypto — this is for you.
Tool: https://ai.exitvelocitybtc.com/audit-defense
CPAs charge $500-2000 to draft these response letters. The legal arguments are mostly the same. The citations are the same. AI does the draft in 60 seconds.
You paste:
- The IRS notice text (skip personal identifiers)
- Your side of the story in 1-3 sentences
AI returns a formal response letter citing:
- IRS Notice 2014-21 (Bitcoin is property, not currency)
- IRS Publication 550 (capital gains)
- Rev. Proc. 2019-09 (specific identification safe harbor)
- IRS Form 8949 Instructions
- IRC §1012 (basis of property)
- IRC §1221 (capital asset definition)
- Where applicable: FAQ on virtual currency transactions (wallet-to-wallet transfers not taxable)
Personal identifiers come back as [bracketed] placeholders so you customize before sending.
Important caveat: I designed it as a DRAFT for your CPA or tax attorney to review. You should NEVER send anything to the IRS without legal review. The tool generates the structure + citations; the review is yours.
But you've now bypassed the $500-2000 draft fee.
Privacy first:
- No signup, no account
- Notice text is processed once and discarded
- Tool runs on Cloudflare Pages with Gemini Flash backend
Why this matters for Bitcoiners:
The IRS has been ramping up crypto enforcement for years. Coinbase 1099s, Kraken disclosures, John Doe summons. The notices are coming. Self-custody Bitcoiners are in a particularly vulnerable position because we don't have a SaaS company holding our records — so we need to be sharper on the response side.
I built this so the response side becomes commodity.
Feedback:
- Edge cases I missed? Specifically thinking about: foreign exchange disclosure issues, mining income classification, NFT/multi-asset cases (this is Bitcoin-only by design)
- Citation freshness — if any of the cited regulations have been superseded by 2025-2026 guidance I missed, tell me
Built by Exit Velocity. Free Bitcoin tax calculator at huggingface.co/spaces/Exitvelocitybtc/bitcoin-tax-calculator. Substack: exitvelocitybtc.substack.com.
Think in Bitcoin.
Are you out of your mind?
Total bullshit. There's no such tjing as bitcoin tax.
Only idiots pay taxes.