Tax question

[Anonymous No.19112351]

What happens if you make millions from some very small crypto trades of just a few grand and didn’t report those trades to the IRS because of how minuscule they were? Will you just pay the taxes on what you cashed out or will they take all your shit?

[Anonymous No.19112399]

>>19112351
Pay your taxes or go to prison.

They do not fuck around.

[Anonymous No.19112448]

>>19112399
I intend to pay but what do I do about my unreported crypto trades

[Anonymous No.19112460]

Where I live Crypto is not regulated. So I ain't paying any taxes to corrupt government officials.

[Anonymous No.19112681]

You may be safe trading crypto to crypto but when there is a cash trace I would report. However, advice is to be proactive about taxes. Once you trip they’ll never let it go. Expect yearly audits and the like.

[Anonymous No.19112907]

>>19112351
They don’t just come and take all of your shit cause you didn’t report a trade. The worst case is they somehow find out about those trades (either you or the exchange told them) and make you pay tax on whatever you sold with no basis, plus interest and penalties, which will be around 10% annual since the tax was due. The truth is though, the exchange probably didn’t report your previous trades and when you sell out for millions you just list your basis as zero and pay and nothing else will happen.
Oh, in case you don’t know, basis is a tax word that usually means “ what you paid for the asset”. For instance, you buy a BTC for $9k, sell for $10k, your basis is $9k and your gain is $1k, which is the amount that is taxed. The tax would then be 15%, or $150. The basis part is subtracted from the proceeds of the sale and saves you a lot of money in taxes, but if the IRS comes sniffing around, you need to have evidence of it. If you don’t, they will say it is zero and charge you 15% on the whole $10k.

[Anonymous No.19112946]

>>19112907
Wow someone who actually knows their shit. Thanks. Screenshotting for future use

[Anonymous No.19113039]

>>19112448
Talk to accountant

[Anonymous No.19113078]

>>19112907
>If you don’t, they will say it is zero and charge you 15% on the whole $10k.
Literally 100 people on the planet paid $0 for bitcoin though (no specialized hardware for mining etc), they couldn't just take money like that could they?

[Anonymous No.19113385]

>>19113078
Everything is income unless the law allows for a deduction. If you don’t have evidence for your deduction, they will not allow it. This all assumes that they came to look, though. Much less than 2% of returns are audited and if you avoid stupid shit like “I didn’t sell no crypto” while coinbase is reporting your $3M withdrawal, you probably won’t be fucked with. People tend to think the IRS is some kind of terminator squad of cutthroat geniuses, when it’s actually a huge bureaucracy of lower-tier accounting students all trying to work as little as possible. The joke is that they had to paint a line down the IRS driveway cause the people leaving early were crashing into the people showing up late.