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Having talked to many people I do believe there is low tax compliance, but having read how the IRS rationalized the Coinbase subpoena to the judge I realize the

Having talked to many people I do believe there is low tax compliance, but having read how the IRS rationalized the Coinbase subpoena to the judge I realize they have no idea to tell if they have compliance or not. They merely did a search string for 2015 for "bitcoin" in tax filings and found 800 people filed that way. So I checked my 2015 tax filings and saw I had manually entered "LTC" for closing a litecoin trade to US dollars. Hm okay, so one of the most compliant US citizens isn't counted as one of the 800 people, got it. So then Coinbase's compliance with the subpoena now has them automatically sending Schedule D information to the IRS and to users based on a net value of any holdings in their account. But Coinbase doesn't know what any of the holdings or transactions represent, just like your bank doesn't know what your deposits and transfers represent. A third party is now assuming that its users are on the hook for capital gains, causing a filed accounting discrepancy for everyone. Fascinatingly incompetent.

amerine 7y ago
> Fascinatingly incompetent. Wonderfully said, haha! ️
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VLM 7y ago
"Coinbase doesn't know what any of the holdings or transactions represent" I had a KYC interview with Coinbase wondering where my coins came from. (I mined them in the 2009 to 2010 era when they were worthless, mined before the famous 10000 bitcoin pizza delivery, LOL). So they have a statement from me, which is probably now on file with the IRS. Now here's a puzzler... I got my 6174-A and so I verified my coinbase register and old tax form reported cap gains from sales match to the penny. Which they do. So now what do I do, just sweat I guess.
- rolltiide 7y ago
  perhaps. The IRS enforcement division is a disproportionately large but small part of what the IRS does. The other parts basically extend privileges to you. like when you do 475 elections, or 83(b) elections, or 501(c)3 elections etc etc. Basically all the cool stuff that makes you not have to pay taxes and only comes up if you run for office. The enforcement division can be overzealous and ruin their own cases just from always thinking they have a smoking gun. If you reported and paid them you'll be fine.
- H8crilA 7y ago
  As always - get a professional to look into your situation. Hopefully you've made enough profit to pay the few hundred $ and forget about it. And if you made it big time - congrats man!

amerine 7y ago

> Fascinatingly incompetent. Wonderfully said, haha! ️

deleted 7y ago

[deleted]

VLM 7y ago

"Coinbase doesn't know what any of the holdings or transactions represent" I had a KYC interview with Coinbase wondering where my coins came from. (I mined them in the 2009 to 2010 era when they were worthless, mined before the famous 10000 bitcoin pizza delivery, LOL). So they have a statement from me, which is probably now on file with the IRS. Now here's a puzzler... I got my 6174-A and so I verified my coinbase register and old tax form reported cap gains from sales match to the penny. Which they do. So now what do I do, just sweat I guess.

rolltiide 7y ago
perhaps. The IRS enforcement division is a disproportionately large but small part of what the IRS does. The other parts basically extend privileges to you. like when you do 475 elections, or 83(b) elections, or 501(c)3 elections etc etc. Basically all the cool stuff that makes you not have to pay taxes and only comes up if you run for office. The enforcement division can be overzealous and ruin their own cases just from always thinking they have a smoking gun. If you reported and paid them you'll be fine.
H8crilA 7y ago
As always - get a professional to look into your situation. Hopefully you've made enough profit to pay the few hundred $ and forget about it. And if you made it big time - congrats man!