/biz/ - Business & Finance

>>16118032
So Coinbase is lying?

>>16118032
show them your bitmex losses.

>>16118043
Coinbase's 1099-K form reports basically all money that ever went into Coinbase or was sold from Coinbase as gains and losses, regardless of whether it went to other exchanges to be withdrawn or just moved to a wallet somewhere. This is well known and can be looked up, but I am not sure what to say to the IRS about it. I don't know what to do. I have a wife and kid but cannot pay this off, at all. We are panicking.

>>16118048
I've never traded on Bitmex though. I traded on Gemini as well but they've closed down my account now and I have no way to access my records there. Also playing around with cold wallets that are now long gone is also a possible problem.
I have never withdrawn from Coinbase to a bank or other institution though, only deposited cash and withdrawn Bitcoin to other exchanges. Yet they still reported every withdrawal as a sale, essentially. What can I do?

>>16118051
Ask on Reddit, meme-ing aside. They’re more helpful when it comes to things like this

>>16118065
Before I try making an account there and try to figure that out, I was planning to just call the IRS in 2 days on Monday and explain. Would that be a good idea?

>>16118094
There’s no harm in doing both

>>16118097
Alright I will try that. Thanks.

>>16118060

> Crypto to Crypto IS TAXABLE

Have you tried also presenting your case to the IRS and let them know what's going on? If the tax man ever came after me for sending Crypto from one wallet to another, I'd probably explain to them the situation and agree for them to investigate if they can to verify that I didn't receive any rewards for sending bitcoin from one wallet to another.

They can't get blood from a stone and it won't be the scandal of the century for a young investor to get pinched by the government for moving his investments from one account to another.

>>16118032
You're fucked.
Go shoot up a synagogue.

>>16118032
Don't do nothing , they been sending those letters to scare cucks.
They don't have the info themselves they are simply scaring people.

>>16118051
You're not going to be put in a cage as long as you address the problem. Get an appointment with an accountant. You'll likely be making payments on this for the rest of your life. Or you can file for bankruptcy and start over. Don't panic.

Give up your American citizenship and move to a very small remote village in Southern South America and wait for either Argentina or Peru to start a new economy based on block chain, at which you should be able to get your crypto in the system with minimal taxes

>>16118354
I've gathered all the records I can. The most I can do, I think, is call them Monday and try to explain.

>>16118424
>You'll likely be making payments on this for the rest of your life.
I'm unemployed as of yesterday. That's a good enough reason to panic.

>>16118032
Pretty sure I’m going to get the same letter. It’s because the 1099 CB sends the IRS just shows the total proceeds of your trades. It doesn’t show gains and losses so without calculating your taxes correctly it could look like you made $1 million like in my case in 2017 and therefore owe $360,000. In reality I maybe made $5,000 but I made hundreds of trading with thousands of dollars.

>>16118646
Exactly. That is exactly what it's showing. What can I do? I downloaded my statements from Coinbase's "Gains/Losses" section. But I used other exchanges as well and gaining those records is nearly impossible. Do I just send all that I'm able to gather from Coinbase to the IRS and hope they don't inquire for more?

>>16118646
*hundreds of trades (that total more than a million)
I already have been getting letters about not filing my taxes from 2017. Not sure what I’m gonna do either. Will they send someone to jail over this?

>>16118670
No not jail, but still. I don't want a giant chunk of my very small paycheck taken out for the next 50 years. What can I do?

>>16118661
I honestly don’t know. You’re in better shape than me I don’t even have access to that coin base account anymore so I can’t even get the information I need.

>>16118032
show letter or you're a jew/fed who came here to FUD

>>16118681
My understanding is that legally the government can only garnish 15% of your pay but if you have significant assets the IRS can definitely seize them.

>>16118697
Yeah I'm terrified of that as well. Why wouldn't just showing the Coinbase gain/loss calculations work? I don't know what else I can do..

>>16118702
I think that should work in your case. I don’t have all my trading information. Just be upfront with the IRS. It’s all you can do anon

>>16118706
Alright then I guess Monday's gonna be a big fucking day.

>>16118721
let us know how it goes anon

>>16118721
Come back and tell us what happens. I’m concerned because I’m in the exact same situation just haven’t gotten that letter from the IRS yet but it’s clearly coming soon.

>>16118721
At the end of the day what can they really do? I think worst case if you’re upfront is a payment plan or wage garnishment. I have no significant assets so I’m not worried about that part.

>>16118734
It's a Notice 2566, by the way. Alright I'll post here how it goes.

>>16118743
Thanks anon best of luck

>>16118032
How many trades did you make?
Have you cashed out a significant amount?

>>16118757
Thousands, but I can only see the ones made on that one exchange. Still hundreds though.
Haven't cashed out anything.

>>16118779
Weird.

>>16118786
There have been sales made on the exchange and withdraws to other Bitcoin/Ethereum accounts. That is it.

>>16118032
Did you ever report or pay any crypto taxes anon? I’ve paid them every year and never have gotten any of the letters.

>>16118813
No. I didn't.

Get a fucking lawyer bud

Also sell everything you have at a loss to get a deduction against gains a la ‘tax harvesting’

>>16118823
Oh ok. Do you do your own taxes or have an accountant? It’s pretty easy either way with once you print the tax stuff on CB. Good luck anon

>>16118060
Why did Gemini close your account?

>>16118843
So I printed the Gains/Loss calculator for the cryptocurrencies I traded that were on Coinbase, my entire transaction history, and I received a 1099-K from them. Is there anything else I need?
I have gotten no forms at all from other exchanges and most of the other exchanges I used are just gone now.
>>16118875
They closed it without any particular reason but most likely because I started trading outside the USA or something at that time and I was trading my entire paycheck so it might have seemed like a lot to them. I don't know. At the moment I need to just focus on Coinbase though and getting this sorted out I think.

>>16118899
You have to fill out form 8949

>>16118944
Ok I can do that. What do I do if I've made virtually no actual profit but Coinbase's 1099 has me on record for hundreds of thousands of dollars?

And the IRS sent this to my parents house, not mine, and they opened it and saw the money and thought I was rich.
My mom said "You need to tell Bitcoin that you didn't get the money they sent you" and "Call Bitcoin and get this sorted out" and "When you bought stocks in Bitcoin, did you make a lot of money?" among other things.

>>16118032
fire up cointracking and figure out what your actual gains were across all exchanges. it is a metric fuckton of work so get atarted today. you can track this shit to the millionth of a penny. when you are done and have checked and rechecked it a dozen times from every angle, then submit your paperwork to the irs. there is a crypto accountant girlthat was interviewed by ivan on tech on youtube. why not hire her? you fucked up by not paying taxes, now you will pay

>>16118094
shit no, you need an accountant

>>16119097
Anon the exchanges I traded on have no records or already shut down and are gone.
>So you're fucked then.
I know. No need to respond.

>>16119037
cointracking.info

start using it right fucking now. put all the info i there, every trade, all fees. use the coinbase api and it will auto inport. there are instructions. pretending there is no way to get info on other trades is not going to save you. no one will feel sorry for you or bad for you over at irs. get those fucking records faggot.

>>16119104
Send the irs the form back with info about why you disagree with their proposed changes , citing 1099k as illegitimate for actual cost basis , share cost basis. They will accept or reject based on what you share. Happened to me in 2017, didn’t owe any of the 30k they claimed I did

>>16119127
are you absolutely sure they have no records? if so i hope you lost access to all those coins for your own sake back in 2017. if you lost all your private keys any gains will be roerased

>>16119149
So they didn't reject your appeal?

lmao at this thread, lmao at burgers, just lmao

>>16119163
:( it's not funny.

So, I bought a good amount of crypto on Coinbase (pro, I'm not a total normalfag) and just plan on holding and maybe selling some after a couple of years. There's no way the IRS can screw me if I don't do trades or anything, right?

>>16119146
>>16119156
Coinone does not have the records from that far back, I checked. I have destroyed the private keys for Ethereum addresses I used to trade on Idex and Etherdelta. A SIGNIFICANT part of my crypto came from money sent from individuals, not exchanges, and airdrops. I realize both of those are taxable.
>>16119149
So I write a letter to them with the form?
Would it be appropriate for me to print and send the Gains/Losses information produced by Coinbase along as well?
Presumably I also need to file an ammendment to my tax return from that year immediately, adding Coinbase to it.
See it just happens that I filed my tax return for the year in question last month. It seems strange they say they haven't gotten it yet. I need to call on Monday and see if they even got it.

Lmao you burgers are so fucking cucked. IRS is some ancient organisation that takes pdf statements as proof lmao. Just create some Bitfinex account, download the statements, then edit to show you lost all those gainz. I seriously doubt they will even take their time to look into it and good luck for them trying to get Bitfinex to even respond lmao. Seriously, USA gov organisations probably still have fax machines.

>>16119171
I virtually never traded on Coinbase except to buy in with cash, which you said you did as well.

>>16119181
>Penalty for any fraudulent documentation sent to the IRS is mandatory prison time and fine of minimum $250 with no maximum

>>16119171
buying and holding with no selling or trading is not taxable

>>16119168
Small price to pay for dat freedom, prosperity, wealth, patriotism. Man up and pay your dues lmao.

>>16119178
having money gifted to you is NOT TAXABLE. you do not have to pay tax on money you recieve as a gift. the person sending the money does

>>16119178
watch this
https://youtu.be/-8MGcGBcmX0

>>16119238
Yes but it was not gifted. It was sent as a means of exchange for something else, but obviously it's not like there's any provable difference. I am for the most part just concerned about Coinbase here.

>>16118697
They can garnish 100% of your wages if they want. Unless it's ungarnishable like social security

>>16119251
(You) think I'm going to listen to that fucking tranny?

>>16118032
Time to bite the pillow.

"the economic system of the future"

lmfao

Glad crypto cucks get fucked

>>16118032

The IRS says that the income tax is system of voluntary compliance. It turns out you only owe if you had "Income" which is not what you might think it is. The following was a response to an anon who posed the question "If the income tax is voluntary how do I opt out?" Your situation is slightly different and hinges on the question of " is a crypto coin transaction corporate profit or capital gain" I think it will be interesting to see how this plays out in the courts if and or when that happens. For you however some of the following information particularly the UCC part might help.

Shouldn’t have been day trading goobers if you just buy and hold and sell at a few target price points your life will be way easier.

>>16119526
Does this apply to both state and federal taxes?

Wasn't crypto made in the first place to avoid all of this bull shit

>>16119573

Good question. After the so called civil war the states became federal possessions so as for the UCC part I do believe it would. However the states all have somewhat different rules so I can't so I cant say how that all works. Sane people just move to states with no state income tax.

>>16119037
>My mom said "You need to tell Bitcoin that you didn't get the money they sent you" and "Call Bitcoin and get this sorted out" and "When you bought stocks in Bitcoin, did you make a lot of money?" among other things.
fucking boomers lol

>>16119677
>Sane people just move to states with no state income tax.
Or low taxes. My state takes fucking pennies from me every year, which I don't particularly mind since it would be more of a pain in the ass to leave than it is to pay.

>itt a child has the sudden realization he's been playing around with real world grown ups and cries when they call him out on his poor judgement

>>16118032
OH SAY WHERE’S MY FEE
FOR YOUR CRYPTOCURRENCY

>>16119694

Rich people organize their finances in such a way that they don't own anything just control it. An indapendant contractor dosnt have to have to revive renumeration directly it can go into an account he or she controles but dosent confer liabilty onto themselves.

>>16118032
File a Police report as if they were stolen. Then you can show them as a loss, IRS considers Crypto as property right?

>>16118424
You cant avoid taxes by filing bankruptcy

>>16119181
This thread is glowing and ultra cucked.
>Be me, trade on Coinbase
>Make decent gains in the 2017 run
>One of the first questions on my tax return
>"Anon have you traded any crypto in 2017"
>(((Check yes or no)))
>Checks no
>files taxes
>moves on with life
>not a peep from the IRS until 2018 to file the next years taxes
>repeat

>>16119168
OH NONONO
AT LEAST YOU CAN HAVE GUNS THOUGH
HAHAHA
OHNONONONO

>>16118032
You have my sympathies anon. How much money did you invest?

>>16119896
How decent of gains are we talking here? I mean, where's the cutoff for the IRS's interest? Because I have to imagine they'd want to know why my bank account added a couple digits within a month or so.

>>16118813
>>16118823

Are you serious? This has to be a larp