AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
For US tax purposes, crypto you receive from a Nigerian client for your work is ordinary income, measured at its fair market value in US dollars when you receive it. The IRS treats digital assets as property, not currency, so if you later sell or swap the coins, any rise or fall from that dollar value is a separate gain or loss. Freelancers report the income on Schedule C, where self-employment tax also applies.
Some Nigerian clients prefer to pay in stablecoins such as USDT or USDC, or in bitcoin, because it can be quicker for them than finding dollars through a bank. For a freelancer in the US, that payment is not a grey area for tax. The IRS has a clear starting rule, and most of the work lies in keeping records that let you apply it. This guide covers the US side only and is information, not tax advice.
The rule: income at fair market value on the day you receive it
The IRS digital assets page (reviewed 2 September 2026) says digital assets are treated as property, not currency. If you receive a digital asset for goods or services in a business context, it is taxed as ordinary income, and the amount is its fair market value in US dollars when you receive it. The same page tells independent contractors to report that income on Schedule C.
Three things follow from this:
- The income figure is the dollar value at receipt, not the amount on your invoice and not what the coins are worth at year end.
- That dollar value becomes your basis in the coins. The IRS page says basis is generally cost in US dollars; for coins you earned, the value you reported as income plays that role.
- When you later sell, swap or spend the coins, you compare what you get with that basis. The difference is a capital gain or loss, reported separately from your business income.
A worked example
Example only, with illustrative figures. A Lagos agency owes you $2,000 for a design sprint and pays 2,000 USDT. On the day it lands in your wallet, the coins are valued at $1,998. Three weeks later you sell them for $2,004 and move the dollars to your bank.
| Step | What you record | Amount (example) |
|---|---|---|
| Receipt | Schedule C gross receipts | $1,998 |
| Your basis in the coins | Value at receipt | $1,998 |
| Sale three weeks later | Proceeds | $2,004 |
| Difference | Short-term capital gain | $6 |
If the coins had fallen to $1,950 before you sold, your business income would still be $1,998 and you would have a $48 capital loss. That is the trap with volatile coins such as bitcoin: you can owe income tax on a value you never turned into dollars. Self-employment tax is figured on your net business profit, so the $1,998 also feeds into Schedule SE once your net earnings reach the $400 threshold the IRS self-employment tax page sets.
The Form 1040 question and broker reporting
Form 1040 asks every filer whether, at any time during the year, they received a digital asset as a reward, award or payment for property or services, or sold, exchanged or otherwise disposed of one. If a Nigerian client paid you in crypto, the answer to the first part is yes, even if you never sold the coins.
The IRS page also says brokers must report digital asset transactions on Form 1099-DA for transactions on or after 1 January 2025. That covers sales through a US broker or exchange. It does not mean anyone reports the payment you received from your client, so your own records carry that income.
Records to keep for each payment
- The invoice in dollars, with the client's name and the work it covers.
- The wallet address and network, and the transaction hash.
- The date and time the coins arrived, and the dollar value you used, with the source of that price.
- Any network fee you paid to receive or move the coins.
- Every later sale or swap: date, proceeds in dollars, and fees.
Pick one pricing source and use it the same way every time. IRS Publication 54 says amounts on a US return must be expressed in US dollars; using a consistent, documented value is what makes your figures defensible if they are ever questioned. See recordkeeping for freelancers paid in naira and dollars for a fuller system.
Points to agree with the client before accepting crypto
- Price in dollars, settle in coins. State the invoice in USD and agree that the coin amount is fixed at the moment of sending, so neither side argues about the rate later.
- Who pays network fees. Say it in the contract.
- Which coin and which network. A stablecoin sent on the wrong network can be lost; confirm the address and network in writing.
- The client's own rules. Your client has its own position under Nigerian law and its bank's policy. Ask them to confirm they are comfortable paying this way; do not assume it on their behalf.
If you mix crypto and bank payments across clients in the US and Nigeria, they still sit on one Schedule C for one business; see US and Nigerian clients on one Schedule C and self-employment tax on income from Nigerian clients.
Where Pryme fits
Pryme does not handle crypto. Where a Nigerian client can pay by bank transfer instead, a Pryme Business Account holds USD and NGN with local details for each, so the payment lands as dollars with a clear record. Invoicing sends the dollar invoice, and verifiable statements through VerifyDoc.ai on receipts give your accountant a document anyone can check is unaltered.
Questions people ask
Is crypto from a Nigerian client taxable in the US if I never cash it out?
Yes. The IRS treats crypto received for services as ordinary income at its fair market value in dollars when you receive it, whether or not you sell it.
What value do I use for USDT received as payment?
Its fair market value in US dollars at the time you received it. A stablecoin is usually close to one dollar, but record the actual value from a consistent source.
Do I pay self-employment tax on crypto payments?
If you are self-employed, the income goes on Schedule C, and self-employment tax applies to your net earnings once they reach $400 for the year, per the IRS.
Will I get a 1099 for crypto my client sent me?
Probably not from the client. Form 1099-DA covers broker transactions on or after 1 January 2025, such as sales through an exchange, so keep your own records of receipts.
Sources
- IRS: Digital assets (reviewed 2 Sep 2026) · accessed Oct 2026
- IRS: Instructions for Schedule C (Form 1040), 2025 · accessed Oct 2026
- IRS: Self-employment tax (Social Security and Medicare taxes) · accessed Oct 2026
- IRS: Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad (Rev. Dec 2025) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.