Fair point.
Yes, I am in the US.
Topic: Amend Prior Tax Years or Move Forward? (Read 86 times)
Hello Bitcoin Forum! I have millions in bitcoin gambling winnings going back many years in cold storage and want to come out of the cold. I have reported as a professional gambler for many years and will either 1) go back and amend my previous tax years to reflect my winnings or 2) just declare going forward as winnings. There is constant rollover so the old winnings have been paid out as losses and the winnings are all relatively new. So I'm wondering about just moving forward and the potential pros/cons. Look forward to any assistance!
To begin with, you could say in which country you have to pay these taxes on gambling, as the legislation may vary from one country to another.
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I guess you are a CPA in the USA, right?
Hi Lost!
This is exactly what I help with
I am an attorney and CPA and every year I help hundreds of clients who have not previously reported (or reported in full) their crypto transactions.
In most cases, it makes the most sense to go back and amend the prior years to report the wins, any capital gains, and income. The IRS is getting more information then ever before from a variety of sources and we get calls everyday from people being audited for not reporting their prior year activity. By reporting the prior years, you'll hopefully reduce your audit risk.
If you report all the gains in the current year, you won't resolve the prior years and you'll still pay taxes on the total gains.
One point we should discuss is which years the gains are from. The IRS typically has 3 years to audit tax returns, but it can be extended to 6 years if there is an understatement of tax of 25% or more. This threshold is fairly easy for the IRS to reach in crypto or gambling audits.
Lets chat and discuss the best path forward!
This is exactly what I help with
I am an attorney and CPA and every year I help hundreds of clients who have not previously reported (or reported in full) their crypto transactions.In most cases, it makes the most sense to go back and amend the prior years to report the wins, any capital gains, and income. The IRS is getting more information then ever before from a variety of sources and we get calls everyday from people being audited for not reporting their prior year activity. By reporting the prior years, you'll hopefully reduce your audit risk.
If you report all the gains in the current year, you won't resolve the prior years and you'll still pay taxes on the total gains.
One point we should discuss is which years the gains are from. The IRS typically has 3 years to audit tax returns, but it can be extended to 6 years if there is an understatement of tax of 25% or more. This threshold is fairly easy for the IRS to reach in crypto or gambling audits.
Lets chat and discuss the best path forward!
Hello Bitcoin Forum! I have millions in bitcoin gambling winnings going back many years in cold storage and want to come out of the cold. I have reported as a professional gambler for many years and will either 1) go back and amend my previous tax years to reflect my winnings or 2) just declare going forward as winnings. There is constant rollover so the old winnings have been paid out as losses and the winnings are all relatively new. So I'm wondering about just moving forward and the potential pros/cons. Look forward to any assistance!
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