[ 3 / biz / cgl / ck / diy / fa / ic / jp / lit / sci / vr / vt ] [ index / top / reports ] [ become a patron ] [ status ]
2023-11: Warosu is now out of extended maintenance.

/biz/ - Business & Finance

View post   
File: 8 KB, 213x250, 1522633358592.jpg [View same] [iqdb] [saucenao] [google]
14974735 No.14974735 [Reply] [Original]

Letter 6174– this is a soft notice informing the taxpayer that there is a likelihood that they did not report their virtual currency transactions. The notice asks them to check their return and, if necessary, file an amended return to correct the misreporting. The taxpayer is not required to respond to the notice and the IRS intends not to follow up on these notices. In short, this is information only to the taxpayer and education on how they comply.

Letter 6174-A– this is a “not so soft notice” from the IRS. As in Letter 6174, this letter tells the taxpayer that there is potential misreporting of virtual currency transactions. However, this notices states that the IRS may follow-up with future enforcement action. Again, no response is required if the taxpayer believes that they are in compliance. Taxpayers who receive this notice should be aware that they have been put on “notice” that they have been identified as a noncompliant taxpayer for potential future enforcement.

Letter 6173– This notice requests a response from the taxpayer about the alleged noncompliance. The letter provides instructions on responding to the IRS. The IRS intends to follow up on these responses to determine if the taxpayer is in compliance.

Mass mailing of these letters will occur during the week of July 22, 2019, and continue through August. Taxpayers receiving this notice will have a special hotline and address at the IRS for any contacts and responses.

https://www.irsmind.com/audits/irs-begins-targeting-taxpayers-who-misreport-virtual-currency-transactions/
https://old.reddit.com/r/Bitcoin/comments/chgpmw/so_lets_talk_about_irs_letter_6174a/
https://old.reddit.com/r/Bitcoin/comments/chupoe/irs_we_have_information_that_you_have_or_had_one/

>> No.14974750

>>14974735
NUH UH

>> No.14974769

feels good to not be an amerishart
imagine paying taxes on crypto

>> No.14974788

>>14974769
Why do Americans receive gigantic tax bills even if they take a loss on their crypto trades? Is this the price of freedom?

>> No.14974804
File: 186 KB, 377x512, 9456_Pepe_Cringe.png [View same] [iqdb] [saucenao] [google]
14974804

lol it's those who reported taxes on crypto that got the letter, and people who didn't report didn't get one

>> No.14974805

Feels good to live in land of the free

>> No.14974810

Except coinbase would never fuck me like that dumb fucks

>> No.14974854

>>14974788
>Why do Americans receive gigantic tax bills even if they take a loss on their crypto trades?
This only applies if you sold massive gains at the peak of the 2017 bubble and then immediately bought back in and held through the 2018 bear.

>> No.14974865

>>14974735
And how exactly is the IRS going to know I have cryptocurrency transactions? Coinbase doesn't report anything unless I do at least 200 trades in a year, and I'm well below that number.

>> No.14974867

>>14974788

In the US crypto doesnt have the "wash trade" rule, you can go from say ICX->BTC->ICX (would normally be a Wash Trade https://www.investopedia.com/terms/w/washsalerule.asp)) to "lock in" a capital loss.

>> No.14974879

>>14974865

bold to assume they're not reporting anything, no matter what theyve said

>> No.14974892
File: 190 KB, 1300x865, irs1560634481.jpg [View same] [iqdb] [saucenao] [google]
14974892

>>14974865
Do you really believe they wont subpoena exchanges for info?

>> No.14974895

>>14974879
Nope, they specifically sent me a notice that they are not going to send me a 1099 because I don't meet the threshold. I can also look up my tax transcript on the IRS website and see that nothing has been reported for my SSN.

>> No.14974915

>>14974895
>until they change the terms
>surely the jews wont fuck me in the ass like that!

>> No.14974960
File: 178 KB, 415x597, 1563917225940.jpg [View same] [iqdb] [saucenao] [google]
14974960

FUCK THE IRS
https://www.youtube.com/watch?v=1tFl_LCtaTw

>> No.14974974
File: 28 KB, 418x398, 1370121691645.jpg [View same] [iqdb] [saucenao] [google]
14974974

Does anyone know anything about crypto laws in Brazil? I just want to know because portuguese websites are pure garbage. No, I'm not a nigger.

>> No.14974982

>>14974735
kek I'm glad for once I followed the law and reported everything

>> No.14974993
File: 321 KB, 960x1280, 15613461360171.jpg [View same] [iqdb] [saucenao] [google]
14974993

>>14974982
Good goy.

>> No.14975014
File: 153 KB, 800x450, imcring.jpg [View same] [iqdb] [saucenao] [google]
14975014

>>14974854
*raises paw*

>> No.14975017

>>14974974
If you are not an American you don't have anything to worry about unless you're dealing drugs for crypto and sending to the u.s.

>> No.14975053
File: 91 KB, 400x333, 1563772660444.png [View same] [iqdb] [saucenao] [google]
14975053

>>14975017
Thank God, my shithole gives me more freedom than burgerland.
Also, thank you, you are the first person in this board that didn't call me a niggerfaggot after pointing out my country kek

>> No.14975088

i literally can't report my trades because my bot made 20,000+ trades in the past 3 months and overall it was a loss so i shouldnt owe them shit

>> No.14975105

>>14975088
The consensus is to basically wait for them to contact you, if you didn't cash out and buy a house or something like that, you are probably okay for a while.

>> No.14975161

>>14974960
Based

>> No.14976069

Another redditor has received his letter from the IRS. He made no sales. Only purchases on coinbase and cryto to cryto trades on binance. I think we are going to see a lot of posts about receiving these letters from the IRS.

>I bought about 50K worth of crypto in late 2017, and 2018, and mostly lost money. Currently have crypto totaling less than half of that. I never traded any of this crypto back into cash (at least not for more than a day or two). And I did several dozen trades between different altcoins and different exchanges (like Binance). Because I never totally sold back to cash or transferred cash back to my bank, I assumed there was no capital gains or losses to report. I think my CPA reported the purchases on my tax returns but no sales yet. (Based on what I told her. But perhaps I didn't give her the big picture).

>Today, I received IRS Letter 6174-A. After doing some research, I just discovered that based on new rules, every single trade between altcoins counts as a "sale". I found a very useful site called CryptoTrader.Tax which will connect to my Coinbase and Binance and generate the tax form for me. However, the Letter 6174-A is not specific. It does not say if they are referring to my 2018 returns, or 2017 too.

https://old.reddit.com/r/Bitcoin/comments/chwdwy/received_irs_letter_6174a_due_to_crypto_trading

>> No.14976085

>>14976069
So he reports a shit ton of losses? Lmao Backfired on the IRS as he writes those off against cap gains elsewhere woop de fuckin doo

>> No.14976103

>>14974804
This was always going to be the case. Fucking hilarious.

>> No.14976119

How the fuck would you report it anyways?

>> No.14976133

>do nothing to protect us citizens from fraud and bullshit related to trading crypto
>tax their crypto gains anyways
LMAO. Are they trying to get McVeigh'd again?

>> No.14976137

>>14974788
There is no tax if you only have losses

>> No.14976181

>>14975053
Sopa

>> No.14976228

>>14976069
"any of this crypto back into cash (At least not for more than a day or two")

EVERY FUCKING TIME: this moron in the same paragraph states he never "Cashed out" then goes on to say he did.

BRAIN DEAD IDIOTS!

You either DID (Which he did) or you didnt

>> No.14976247

>>14976228
He only did it for a little bit

>> No.14976413

>>14976119
I am literally printing a physical stack of papers of the trades, send it to them, and then let them deal with it if I get this shit. Overall is a loss anyways.

>> No.14976433

>>14974735
Awesome. Fuck.

>> No.14976486

>>14974805
Lol wish I had citizenship in Canada or some European country. Would move and likely get rid of US citizenship as the US government loves to tax citizens who are overseas earning all income overseas. Don't understand the logic but have realized this country isn't as free as it claims to be.

>> No.14976541

>>14976119
How have you not heard of a Schedule D?
Crypto is treated like a property when sold and otherwise treated like a security when traded.

>t.I spent 6 hours reading tax law on the day my taxes were due to make sure I reported correctly. I have gotten no letter.

>> No.14976594

>>14976486
Israel needs every penny. You....don't want to be anti-Semitic do you? In America we pride ourselves on being the goodest goys of all. You're...not a bad goy are you?

>> No.14976627

>>14974788
>>14974735
It's times like this I'm so happy I do all my crypto trading on RH, except link obviously which aren't for sale.

>> No.14976692

>>14976069

>He made no sales

>cryto to cryto trades on binance

if he was a burger, this is a sale, which was clarified when they indicated 1031 or "like kind" exchanges exclusively applied to real estate and only under specific circumstances

>> No.14977030

>>14976692
You're correct and that's exactly what I was pointing out.
Crypto to crypto is a taxable event and he received this letter even though he didn't sell crypto for fiat.

>> No.14977181

>>14974735
so it is possible to fill a tax return to cover your loses due to shitcoins!!??

>> No.14977243

>>14975014
thats wat u get for fomoing xD

>> No.14977307
File: 2.51 MB, 200x233, 200w.gif [View same] [iqdb] [saucenao] [google]
14977307

Good thing I was holding Vechain

>> No.14977332

>>14977307
https://www.youtube.com/watch?v=WNH7BIzqWNI

>> No.14977364
File: 856 KB, 900x856, 1558007212019.jpg [View same] [iqdb] [saucenao] [google]
14977364

I might would pay taxes on shitcoins if they start accepting the shitcoins I """"""""""""owe"""""""""""""""""""" taxes on. Until then it's literally impossible. I never once traded for usd so they are never going to get any from me aside from what they rob me of from my job.

>> No.14977385

>>14974960
what a fucking drugo

>> No.14977440

In crypto since 2012
Never paid taxes, beside VAT
fuck the state and fuck those that are dependent on it

>> No.14977464

>>14974735
Oh trust me. When uncle sam comes a knockin, my wallet is WIDE open, with a smile on my face.

>> No.14978532
File: 17 KB, 300x300, another-one-300x300.jpg [View same] [iqdb] [saucenao] [google]
14978532

https://old.reddit.com/r/bitcointaxes/comments/chq8k2/nickel_and_dime_bitcoin_trading_for_last_6/

>> No.14978565

>>14978532
He didn't report any crypto on his taxes and only made $1500 profit over a 6 year period.
So as I expected, they must be getting information from other places than the taxes you file.
Perhaps from exchanges or banks.

Hey >>14974804 look above. He didn't report and only made $1500 over 6 years...

>> No.14978596

>>14976247
kek

>> No.14978672

>>14976085
>there is a time limit to report loses >there is no time limit for gains
>feel the goy

>> No.14978706

so if you made a trade that lost you sats but gained usd value it counts as gains? but how are they gonna know that if btc usd value is always chaging

how do they know you made usd profit in a specifit trade unless you traded with theter pairs or something

explain

>> No.14978718

>>14978706
what the fuck is that even a question.

>> No.14979011
File: 30 KB, 495x362, 1524604894970.jpg [View same] [iqdb] [saucenao] [google]
14979011

>>14976692
Thats fucking retarded. If the IRS wants tax on my shitcoins, Im gonna pay them in shitcoins

>> No.14979189
File: 136 KB, 778x682, 1516342495003.jpg [View same] [iqdb] [saucenao] [google]
14979189

>>14977030

Damn, burgers are as fucked as us Aussies. Crypto to crypto is taxable here too which is why I have been EXTREMELY careful not to EVER make a trade which can be counted as a gain and reportable.

>> No.14980190

>>14977440
Very well said.

>> No.14980410

>>14976137
No. Let's say you buy BTC with LINK, make 1000 USD profit on the trade, then BTC immediately dumps 40%, but you still own taxes from these 1000 at the moment of BTC buy order filling, even if you don't have them.