Topic: BEWARE: Coinbase and IRS audit. (Read 124 times)

If you have some coins in the Coinbase account and forget to use it, the IRS may be notified of any profits you make even if you do not use that account.

So you never took care of your taxes and now you're shocked?

To be fair Coinbase didn't cause you to get audited. You did for not reporting your taxes correctly.

I understand though. My first 1099K which is a sum of all your trading volume for the year was for 4 million. I almost had a panic attack when aI got a 1.2 million dollar tax bill but my accountant cleaned it up pretty quick. She was pretty annoyed by the 1000's of transactions. I should add I was day trading bitcoin and at that time was negative as IM a shit trader. But swing trading bitcoin off 2 percent swings makes your volume really high even though you're most likely just losing money and getting destroyed by fees.

this 1099K is showing all of your trading volume for the year. That means your Buys and sells added together. (You bought BTC at 35K and 10 minutes later sold it for 34K losing 1000 dollars, Your 1099K would show 69K in revenue) You just need to refile an amendment and send with it all of your transactions for that year with the sum total of your gains or losses. Then you'll pay tax based on that. I suggest you sign up for cointracking and generate a report to see what you actually owe.

If you had your wages garnished and a lien put on that means you ignored MULTIPLE letters from the IRS. People.. don't fucking ignore letters from the IRS. My guess is OP doesn't know what he's doing and hasn't had a lien or wages garnished yet.. he just got a computer generated notice from the IRS to handle his shit and its warning him that it will happen if he continues to ignore it. Although if its from 2018 and he's been ignoring it for 4 years now, then maybe.

On May 12 I sold 1.95 bitcoin on coinbase. I got an email saying the transaction was canceled. Then I successfully sold 1.95 bitcoin. Coinbase is reporting the cancelled transaction as 2 sell transactions of 1.95 bitcoin each. I've been in contact with Coinbase since May trying to get this fixed. I contacted my state's attorney general and coinbase responded to the AG with lies. Now Coinbase is reporting this as 3 sell transactions for 1.95 bitcoin and according to my coinbase tax report is reporting a $94,000 income on one of the 2 cancelled transactions. I did not receive $94,000 from Coinbase. I have filed complaints and helpdesk tickets with coinbase. Coinbase is incorrectly reporting to the IRS and giving me an erroneous $94,000 tax liability.

In 2017 I bought about $5,000 in bitcoin and forgot about it until 2020, whereas I pulled out about $7,000 (about $2k profit). Skip to this week where I tried to get a loan on a house and found out I had a lien against me for $105k. I called IRS and they told me Coinbase reported I earned $192,097.11 in 2018 (which I didn't). If I earned that and it was in my account I would be happy to pay my taxes on it. I have only earned about $2,000 in my life trading crypto. I checked my account to confirm I didn't have almost $200k sitting there and I did not. I downloaded my "Gain/Loss" report from 2018 (posted in the image above) which shows I didn't earn or lose and money in 2018.