/biz/ - Business & Finance

Your bank will definitely file a document with the IRS and the IRS will put it in their queue and go after it if they think they can get some money, which might take years.

>>58069614
Well, you won't get instantly rekt the moment you submit your fraudulent tax return, if that's what you're asking. But the government definitely has the resources to come after you if they feel like it. It's funny seeing all these geniuses on /biz/ thinking they're pulling a fast one on the most powerful tax-collecting machine in the world by not reporting their crypto gains. Collecting taxes is one of the few things our government is actually good at, it's just a matter of how interesting you are to them.

>>58069727
At this rate the machine will be rusted brown and black by the time they get around to it...

>>58069727
i was opening a crypto custody bank account in switzerland and had to check multiple boxes that state "I am not a US citizen"

>>58069614
If you're registered to vote republican you're begging to get audited desu.

What are my capital gains if all the money I made comes from my parents' allowance? (I don't work)

>I'm not the IRS I swear
>>seriously dude?
>>Yeah it'll work don't worry
>Sorry I just owe like 20k in taxes this year and I'm trying to convince myself that it's fine if I don't pay it. Please advise.
>>anything else?
>frog.jpg
>>This is so stupid

>unironically making gains from crypto
Lol lmao you don't have to pay taxes if you never make money

>>58069614
>How many people in the US are actually paying taxes on their crypto gains?
I didn't owe money this year but I filed anyway just as audit bait. If they audit me, fine enjoy wasting time I still don't owe them shit. If they DON'T audit me, they probably won't audit me next year when I'm paying taxes on bullrun winnings.

>So in this case how does the IRS actually know you owe taxes on that 100k capital gain? Is it reported by your bank? Do CEXs still report large transactions to the IRS even if they don't issue a 1099? Is the CEX reporting external wallet addresses?
They see your bank deposit and no corresponding reported income. It's all auto-reported and a computer sees it and sends an email to some IRS twink to investigate. Yes CEXs make reports even if they don't issue a 1099. The CEX probably isn't reporting wallet addresses simply because the IRS systems would probably shit themselves. When you get investigated, the wallet addresses probably do get reported then and they trace everything through a blockchain explorer to see what you did.

>Sorry I just owe like 20k in taxes this year and I'm trying to convince myself that it's fine if I don't pay it. Please advise.
20k is nothing my dude, just pay it. Yeah it sucks, but if you get investigated they'll shut down all your accounts and you'll have no access to any money that's not in physical cash or in XMR, because they'll track your wallets and tell you not to send any crypto until the investigation is complete.

This year try to focus on doing things to minimize your taxes in the future: hold crypto for at least a year, keep track of your cost basis, don't be a degenerate gambling with leverage over new year's eve. Set aside some money in December for next year's taxes. If you're holding bags in the red, at some point this year sell them, wait 31 days, then buy them back so you get the tax credit and didn't actually lose your bags.

>>58070590
My thing is this though how do they know it's your wallet?
Theoretically I could be sending payments to multiple wallets and they could do their own trading and consider it my wallet?
Like how do you distinguish paying someone in crypto and sending money to a wallet to trade with. Sounds absolutely impossible to prove that it's your wallet legally when you can just say it's a friend or a merchant.

>>58070355
The allowance itself would be income, but you don't owe anything on GIFTS up to a certain amount. Look it up yourself.

If you trade on top of that, it's either short or long term capital gains. If you hold the crypto for less than a year, use the normal income rates. If you hold more than a year, it's 0% up to like 40k (nice) and then 15% up to like 450k (less nice but still better than waging lmao). Your cost basis is calculated as normal.

>>58070383
They're not even THAT competent. I caught a glown on /pol/ the other day trying to get people to admit to torrenting and where they torrent (fishing for private trackers). Then it turned out half the thread was bots he was using to cover himself and the thread died when he fucked off.

>>58070693
>My thing is this though how do they know it's your wallet?
nigga they don't actually know and they don't care, they'll just make you prove it isn't or pay ten gorillion dollars. The burden of proof ends up on you.

>>58070693
That's the best part my dude: they assume all the wallets are yours and then put the burden of proof on YOU to prove that they're not. They get away with this because they freeze your accounts while you're being investigated, and then just drag the investigation out until you comply, and it's not in court yet.

Every wallet that sends or receives to a wallet that's known to be yours (eg the wallet that sent funds to a CEX to trade/cash out) is assumed to be yours.

Now keep in mind mainly what they're going to do is look for unreported gains and gains where you claim a cost basis, they'll make you prove that cost basis. With DEXs that gets really complicated, especially if you hold ETH for periods of time and THEN swap it, or swap back and hold ETH again, or buy a bunch of ETH and then use it on multiple different tokens etc. But the maximum they can say you owe them is a zero cost basis of all your gains (normally in USD, but if you swap well and turn 1 ETH into 1000 ETH they might come for half that ETH, too).

>Like how do you distinguish paying someone in crypto and sending money to a wallet to trade with.
That's on you to prove, but in my case I just keep track of what I actually buy with crypto and who I bought it from (it's entirely 4chan passes, and every time I buy one I also buy that amount of crypto with USD, so it's easier to see in my transactions, like $20->BTC->spent on 4chan wallet address).

If you're buying eggs from your farmer friend with crypto, I sure hope he was giving you receipts.

>>58070790
isn't it the other way around?
every wallet you send to is considered a sell, until proven otherwise
because then every transaction you can't prove is a taxable event in the first place

>>58069614
>I'm not the IRS I swear

>>58070876
You're splitting hairs. The bottom line is that they'll propose you pay an absolutely anus-splitting sum of money or prove that you don't actually deserve your anus split. Simple as.

>>58070876
It's considered a taxable event, technically.

Like I said, the main thing is they're going to figure out what they think your gains were, and tell you to pay the most you could possibly owe them (zero cost basis), and then it's up to you to prove your cost basis. Oh and they'll penalize you for failing to report your taxes correctly, and charge you interest on what you should have owed them while the investigation proceeds.

20k is a pittance compared to explaining to a fat bureaucrat (who by the way is jealous as hell of your gains and wants to punish you for escaping the wage cage) all your swaps and transfers out to 20 decimal places. I was nearly suicidal just doing relatively simple self custody calculations and figuring out my cost basis on a measly 30 sales last year.

>>58070790
never reported crypto taxes in my life not starting now

>I was nearly suicidal just doing relatively simple self custody calculations and figuring out my cost basis on a measly 30 sales last year.
Are you retarded? I did this same thing yesterday, it was easy and took a couple of hours max.
I already learned my lesson years ago about trying to "trade" with thousands of txs.
If you just do simple transactions you can easily keep track of the usd amounts in excel

>>58070590
I also filed this year just to have a record of the cost basis.

>>58071106
Where do you live? For how long have you been withdrawing money to your bank account? Are you afraid?

>>58069614
https://www.dextools.io/app/en/solana/pair-explorer/5WVFjPkoDzqr95aWf4x6h1TLsFjtMUjhvDtzBUssEJYb?t=1710872923877

>>58071177
Yeah I was trying to use turbotax to import the CSV from coinbase, but all my purchases were on coinbase pro and they didn't merge the statements with coinbase advanced. Turbotax's CSV import tool was also broken, and I spent hours a day for three days trying to make it work before I gave up, calculated everything myself, and manually entered the transactions.

Next year I'm just going to file myself.

>>58070493
>you don't have to pay taxes if you never make money
This anon fucks.