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> Do these exchanges report 1099s to the IRS? Not usually: "With the exception of some business accounts, Coinbase does not provide 1099 forms. Coinbase does
by iak8god 9y ago
> Do these exchanges report 1099s to the IRS?
Not usually:
"With the exception of some business accounts, Coinbase does not provide 1099 forms. Coinbase does however provide a specialized Cost Basis for Taxes report which will help with filing your taxes." [1]
After this hypothetical transaction you will likely owe capital gains tax. It would be hard to hide any significant amount from the IRS if you actually want to convert it to USD, for example by transferring to a bank account [2]. Regardless, the IRS is definitely paying attention and going after back taxes on large exchange accounts [3].
[1] https://support.coinbase.com/customer/en/portal/articles/1496488-taxes-faq?b_id=13521 https://support.coinbase.com/customer/en/portal/articles/149...
[2] https://pocketsense.com/deposits-reported-irs-7557.html https://pocketsense.com/deposits-reported-irs-7557.html
[3] http://fortune.com/2017/11/29/irs-coinbase/ http://fortune.com/2017/11/29/irs-coinbase/
- tc313 9y agoI always thought the $10,000 reporting rule was for physical cash deposits. Is it also triggered when you, say, transfer $10,000 from your online brokerage account to your checking account?
- PeterisP 9y agoI believe that this doesn't trigger a mandatory report, however, it would be reasonable to expect that the IRS will ask every major bank for large incoming transactions from e.g. Coinbase, audit every one of those who hasn't listed any capital gains on their tax report, and charge the appropriate taxes+fines. Of course, they don't have to do this now, they'll start next year after everyone has filed their taxes, but they can review it a few years later if they wish.