Tax Q: Will reporting taxes on a new Coinbase acct reveal other accounts?

avikz

legendary

Activity: 3080

Merit: 1500

Quote from: TimG19 on July 18, 2018, 04:48:02 PM

Hey, new to this forum.

Here's the background on my tax question:

From about 2014 to 2015 I had Coinbase accounts in my name that I used to exchange a few thousand dollars of bitcoin with. I used bitcoin as a currency, so any profits I made were incidental - taxes owed would be about $20. I never thought to report these transactions, and since they were less than the $20k threshold that was sent to the Feds, I haven't had any issues with it.

Now, during 2017, I purchased several tens of thousands of dollars of Bitcoin in my name also through Coinbase, but under a different account. I plan to sell these eventually and pay taxes on the profit.

My question is: If I sell these coins under this 2017 account as an investment, will this somehow trigger the release of information about my old 2014-2015 accounts? I don't mind paying taxes - I just don't want to be on the IRS delinquent list.

Thanks for any help.

As you are saying that the tax amount owed is about $20, I would encourage you to go ahead and release the information from the old account to IRS. Because you never know what might trigger issues in future. For just $20 tax, you certainly don't want to face any issues. So go ahead and declare that! Because if you have used your original government issued ID to create both of your accounts, it would be released to IRS no matter what the current status of these accounts are.

milewilda

legendary

Activity: 3094

Merit: 1127

Quote from: TimG19 on July 18, 2018, 04:48:02 PM

Hey, new to this forum.

Here's the background on my tax question:

From about 2014 to 2015 I had Coinbase accounts in my name that I used to exchange a few thousand dollars of bitcoin with. I used bitcoin as a currency, so any profits I made were incidental - taxes owed would be about $20. I never thought to report these transactions, and since they were less than the $20k threshold that was sent to the Feds, I haven't had any issues with it.

Now, during 2017, I purchased several tens of thousands of dollars of Bitcoin in my name also through Coinbase, but under a different account. I plan to sell these eventually and pay taxes on the profit.

My question is: If I sell these coins under this 2017 account as an investment, will this somehow trigger the release of information about my old 2014-2015 accounts? I don't mind paying taxes - I just don't want to be on the IRS delinquent list.

Thanks for any help.

Everything would be known but i could say it wont really matter at all because as you have said that you had paid up tax with it and now you have used up other account as well which do involves that thousands of dollar investment but i dont really see a problem why would you stress out yourself regarding to be included on delinquent list. You can always approach coinbase about merging those old and new accounts.

audaciousbeing

hero member

Activity: 1330

Merit: 569

Quote from: TimG19 on July 18, 2018, 04:48:02 PM

Hey, new to this forum.

Here's the background on my tax question:

From about 2014 to 2015 I had Coinbase accounts in my name that I used to exchange a few thousand dollars of bitcoin with. I used bitcoin as a currency, so any profits I made were incidental - taxes owed would be about $20. I never thought to report these transactions, and since they were less than the $20k threshold that was sent to the Feds, I haven't had any issues with it.

Now, during 2017, I purchased several tens of thousands of dollars of Bitcoin in my name also through Coinbase, but under a different account. I plan to sell these eventually and pay taxes on the profit.

My question is: If I sell these coins under this 2017 account as an investment, will this somehow trigger the release of information about my old 2014-2015 accounts? I don't mind paying taxes - I just don't want to be on the IRS delinquent list.

Thanks for any help.

Of course there is a possibility that your old account would pop up because aside names that is used to identify an individual, there is always some characteristics that you might have forgotten and filled on both account that could connect the two accounts and since you are willing to pay your tax, I would suggest you carry out the trade you want to do on the old account then you are free from any tax liability and you don't end up and the defaulting list.

The other way is if you can risk it especially if you didn't do any biometric verification in the former account and this new one can just suffice as your only account or you just write to Coinbase to merge your account or close the former one since technically you are not owing any tax liability on it.

1Referee

legendary

Activity: 2170

Merit: 1427

It's actually very simple; if the service in question has all the data it needs about you (which it has) to mess you up badly in case the government asks for it, you can be sure that it will happen one day, especially in Coinbase's case. Coinbase is one of the more regulated and government infiltrated exchanges that we have in this industry.

However, considering that the dated transactions haven't triggered any attention after the IRS saga, they probably won't anymore, and I would say to leave them out based on that.

See it as a fresh start. If you're too paranoid, which is entirely up to you, you can still pay the $20 in taxes you think you 'owe' the IRS.

palle11

sr. member

Activity: 2366

Merit: 332

Possibility exist that your old account might pop up if you didn't do away with the account entirely. If there is a connection between the old and new in registration, or you still visit the account, the tax deficit will still be there.

TimG19

newbie

Activity: 1

Merit: 0

Hey, new to this forum.

Here's the background on my tax question:

From about 2014 to 2015 I had Coinbase accounts in my name that I used to exchange a few thousand dollars of bitcoin with. I used bitcoin as a currency, so any profits I made were incidental - taxes owed would be about $20. I never thought to report these transactions, and since they were less than the $20k threshold that was sent to the Feds, I haven't had any issues with it.

Now, during 2017, I purchased several tens of thousands of dollars of Bitcoin in my name also through Coinbase, but under a different account. I plan to sell these eventually and pay taxes on the profit.

My question is: If I sell these coins under this 2017 account as an investment, will this somehow trigger the release of information about my old 2014-2015 accounts? I don't mind paying taxes - I just don't want to be on the IRS delinquent list.

Thanks for any help.

Topic: Tax Q: Will reporting taxes on a new Coinbase acct reveal other accounts? (Read 155 times)