/biz/ - Business & Finance

Set a payment plan up I’ve been paying for 5 years

Tell them to eat your ass and move to south east Asia

>>14991302
But it cant be right. Someone has to of made a mistake here.

>>14991331
For that much money it’s worth hiring an accountant to review

>>14991272
i made like $300 in 16 and about $260 this year. will they come after my broke ass? i have no job and only like 1k in the bank.

>>14991331
yeah you made a mistake unreporting gains

>>14991343
>i made like $300 in 16 and about $260 this year. will they come after my broke ass? i have no job and only like 1k in the bank.
>Less then $1000 in total assets
If I were to file that as a violation I'd probably be fired I doubt the IRS would care

>>14991345
I only missed a $14k 1099 but they say I owe $34600 now. Coinbase says I made $67k but I only made $1k. This is all fucked up!

>>14991272
Also if you lost money over all get the records for this and file it as capital loss

>>14991272
this is why you hodl. you pay tax on every profit you make from a trade. if you plan to trade for profit in the future take out some of the profits and stack them as a tax fund. on the other hand if you didn't actually make profit buying and selling. Coinbase could of reported the wrong information to the IRS. They report the total volume you trade, not what you have made profit on, you got to report that yourself with your trades buys and sells.

>>14991368
I didnt lose money but I only made $1000 profit

>>14991328
Yeah. Just renounce your US citizenship. That’s great advice.

They just give it back if you ask for it

>>14991365
you had $1000 gain as of December 31, 2017?

Can someone please explain these horror stories of people making small profits in crypto trading but getting nailed with $100,000 in taxes? How the fuck does this work?

>>14991365
They will have records of all Wallet transfers and USD to bank transfers. Either you are lying, or Coinbase fucked up and reported to the IRS that you made a profit of 90k.

>>14991399
>>14991387
>>14991386
>>14991377
>>14991375
>>14991371
>>14991368
>>14991365
>>14991358
>>14991345
>>14991343
>>14991338
>>14991331
>>14991328
>>14991302
https://youtu.be/R6ioxKeQC6Y?t=129

>>14991411
you have to refile your taxes.

>>14991375
Then you should only have those $1000 tazed as capital gains
File the Gains and losses together and show that you only made $1000 total at the end of it
Coins are a commodity and are treated as such

>>14991387
They are probably untrue. The IRS would go after you for getting CASH deposited into your bank from Coinbase or somewhere else. These sites keep detailed records of these transactions. The IRS isn’t going after the guy who got a $5000 deposit from Coinbase. They are going after the retards getting these insane lump sums and not reporting it

>>14991386
Yes

>>14991399
Then they should see that I only made $1000!!! Coinbase did fuck up and say I made $67000 but they arnt replying to my emails and they have no phone number support!

>>14991387
Shitty exchanges report all your realized gains without factoring in your losses

>>14991272
How do u know if coinbase sends a 1099? I've tried to figure out what I sold through them but the records they offer are unclear because they count moving crypto off coinbase the same as selling it.

>>14991425
It takes them 8-40 hours to respond. Ask for a detailed report of all your financial transactions there.

I tend to think you are lying. How much cash did you to deposit into Coinbase through the past few years?

>>14991272
Sounds like they are counting every trade and movement as a gain for the full value of whatever u were trading, instead of the difference between the two as gain/loss

This is why tether exists tho, trading in and out of usd is a mess

faggot larp, go fuck yourself

In the finance world you have to account for large deposits. A form called a CTR is generated which is sent to the government for transactions that are at 10k. This is to combat money laundering. Coinbase has a specific 10k a day withdrawal in order to comply with this. Pretty much a CTR is being generated every time you are depositing to your bank and if you try to break that up then it’s looked as being structuring. I did KYC for J.P. Morgan and it’s literally the first thing they teach you.

>>14991272
>each time i traded counted as a taxable event
not in the US, coinbase messed up

>>14991328
This except go to EE if you aren’t a cuck

>>14991387
Coinbase seems to be reporting it wrong, any time you move coins they count it as a sale. If this guy is telling the truth, it sounds like they're reporting each trade as the full amount like:

Have $10k, buy 1 btc

Sell 1 btc at $11k, buy back at $10k, do this 10 times

So you made $10k profit but cb reports you made the whole $11k stack 10 times to the IRS saying you made $110,000

>>14991420
Irs treats coins as property not a commodity (or collectable thankfully)

>>14991494
What if you just don't like selling a lot of btc at once because coinbase has such a bad record of customer service and do smaller amounts under that limit, maybe monthly or every few weeks? Reddit is full of horror stories about people sending large amounts and it getting lost or not going through properly and getting no response for months

>>14991567
The fact is that Coinbase looks at it like you deposit 1k$ into your account. Your 1k$ nets you 50k$ now if you hold on to that cash in your account and don’t sell then coinbase sends a 1099 stating you made 49k in capital gains. If you sell, same as above. If you sell then deposit you have CTRs and a 1099. I’ve read stories of people making over 200k then losing it in bad investment and they didn’t even withdraw but CB sent a 1099 saying they made 200k and it’s now taxable

>>14991494
Okay heres my problem with this. Say I actually make it and want to withdrawal to my bank account. Coinbase is making me structure my deposits by capping my withdrawal, right? Isn't this asking for trouble?

>>14991615
So does this get corrected or does that $200k just remain taxable? I would never fucking pay them for that money. Go to court

>>14991627
Structuring is a money laundering term where you make small deposits to try to circumvent a 10k CTR but you can’t get around a 1099 or a CTR because even if they suspect your structuring they will do a CTR

>>14991639
With the ability to transfer out of CB to a exchange and a wallet CB looks as it as money regardless if it’s in your bank or with them

>>14991647
>>14991655
That's the thing I wouldn't be trying to structure, not avoiding the IRS notice, but their withdrawal limit makes it appear as if you're doing so. My last concern is if I actually make it. I'll pay my taxes.
My biggest concern right now is they somehow do some math and the like 4k I've made from a meager 6.5k investment this year is reported as much much more like some anons claim happens.
I'm interested if these things typically get corrected and/or can this be solved in court.

>>14991377
>not getting drafted to die for Israel is a bad thing

>>14991729
Your 4K will rest entirely on CB. I would wait for your 1099 and then SS your deposits/withdrawals and wallet transfers in case it’s wrong. Then just attach that to your tax report

God I hope I dont get audited. Self reported in both 17 and 18. Just hope I didnt fuck up.

>>14991729
What would happen if I send all the coinbase money to an overseas account?
I am living in Spain and I would like to know if I would have problems with the USA

>>14991874
>tfw pay taxes and still fear the irs

the irs fucking you literally just comes down to pure luck

it doesn't matter if you tried you hardest to follow the law or do absolutely nothing

Hire an accountant then do payment plan with irs and after paying all that shit renounce us citizenship and gtfo of burgerland land of the free bullshit. They will keep taking your money until you die

>Oh say can you shart
Maybe move to Germany? You could ask for asylum

>>14991272
>I claimed my gains as about $1000(Which I believe is roughly correct) and coinbase sent in a 1099 saying I have a taxable income of $67,000.
Coinbase told the IRS the total amount of your sales prices. The IRS then calculated your liability based on "zero basis cost" transactions.

"Basis cost" is "how much you paid to buy". "Zero basis" means that the IRS says "you got it for free unless you can prove otherwise".

So, you just need to show that you actually paid money to buy the coins.

They did it to me a few years ago with stocks. They claimed I owed $600,0000 in taxes. No shit, they said $600,000. And then I showed them all of my statements from E*Trade showing that I actually had had to pay money to buy those stocks, they didn't just magically fly out of my asshole, and that after accounting for what I'd paid for them, I had a net loss and didn't owe a dime.

I hired an "enrolled agent" (a CPA with an IRS license) to check my math and to sign off on my return. It cost me $200. He found a couple of other deductions I didn't know about, so it was worth it, that meant more losses to carry over to offset taxes in the next year.

And the IRS said "KTHXBYE". That was the end of it.

Good luck, OP. It really isn't hard. Just find a CPA/EA who has at least heard of cryptocurrencies. You'll be fine.

Tfw i never paid taxes for crypto and i never will
Tfw there are people that actually exchange their btc for worthless fiat

>>14992875
>Tfw there are people that actually exchange their btc for worthless fiat
yes thats stupid
but taxes dont only apply to fiat. its any sort of capital gain/loss, which includes crypto

>>14992937
If you only bought in small increments over months/years and dont use jewbase the state doesnt know about your cryptos

>>14991272
nice fud kike irs fag

>>14992689
It's shocking how long an explanation based on zero-cost basis taxation took to appear in this thread (and so effectively explained), with all the Accountants and Financiers that apparently post here.

People are fucking incompetent.

Coinbase is fucking retarded and I think this same story is going to pop up all over Reddit and biz in the future. I remember someone posting about this before. They don’t factor in cost basis and in 2017 their tax docs were fucking shit, and still are.

They have sent their stupid incorrect 1099 or whatever the # is to the IRS and buttfucked literally every customer with incorrect information. IRS thinks everyone made more gains then they actually did. So you’re just going to have to show the buys and sells and how it only came to $1k profit, not 67k. It’ll be a hassle, but thank dumb fuck Coinbase for it. I hope I don’t have to deal with this but I’m sure I will as well. Fucking faggots.

>>14991272
Don't sign anything, it's time to lawyer up Anon.

>>14992152
And then what? It's not like you can just go be a citizen in any country you want

>>14991534
This is correct and probably what’s happening

>>14991272
OOOH THE LAAAND OF THE FREEEE, AND THE HOOOOME OF THEE BRAAAAAAAVE

>>14991272
If you have your trading history literally just talk to the irs investigator and lay it out for them. Like, if you are in a position where you are absolutely fucked, just giving them all of that information might be better than what they have you at in the default.

If I bought 1btc in 2017 on CB in 2017 when it was like $400, and withdrew it the same say, am I safe from this bullshit?

>>14992689
Thanks for this reasonable post. Hoping I don't get a letter but if I do will find a good CPA before getting stressed.

>>14991377
yes because a fresh start is so much worse than being tossed in jail for back taxes or being buried under mountains of crippling debt.

Don't pay shit. When you make it, leave the country. Return if this fucked up country figures out wtf they are doing with crypto. This makes mad. Sorry anon

>>14991328
Actually this, fuck the IRS and fuck the USA. Get out before it's too late.