3 ms·

1099s are pretty frequently issued with incorrect amounts. Have you retained all your records to prove your cost basis/etc.? General informational link: https:

1099s are pretty frequently issued with incorrect amounts. Have you retained all your records to prove your cost basis/etc.? General informational link: https://www.irs.gov/appeals/collection-due-process-cdp-faqs https://www.irs.gov/appeals/collection-due-process-cdp-faqs Definitely get in touch with a tax attorney before you go further with the IRS, and watch what you say.

alephnan 5y ago
I was just on the phone with them before see your message. So apparently Coinbase reported my 1099k as having an income of $99,xxx.00 Before this, I had no idea what a 1099k is, actually. I'm a salaried employee who receives w2. Apparently I was supposed to file a schedule C for my cost basis, which I don't believe I did. I filed form 8949 instead. I have a CSV of my trades from Coinbase as the cost-basis. I'm not sure if that is legitimate enough. I'm not sure Coinbase keeps records back to 2017.... The agent told me that the next steps are to receive the documents related to the audit and file an amended tax form with schedule C.
- tldrthelaw 5y ago
  Schedule C is for business deductions, are you mining/staking as a business? If so, you'll owe self-employment tax. If not, you probably want to file it as hobby income which is Form 1040 Schedule 1. You can't take deductions from it, but I would be surprised if the deductions offset the aforementioned self-employment tax so as to make Schedule C worth it.
  - alephnan 5y ago
    Right. I have a question mark on the schedule C bit. This will be a question I will leave for the tax pros. What I know is that Coinbase reported a 1099k with an income of $99,xxx.00 In addition to the income reassessment, the IRS also pegged on: Total Self Employment Tax: $2,6xx.00 And no, I did not mine or stake.
    - deleted 5y ago
      [deleted]

3 ms·

1099s are pretty frequently issued with incorrect amounts. Have you retained all your records to prove your cost basis/etc.? General informational link: https:

by tldrthelaw 5y ago

alephnan 5y ago
I was just on the phone with them before see your message. So apparently Coinbase reported my 1099k as having an income of $99,xxx.00 Before this, I had no idea what a 1099k is, actually. I'm a salaried employee who receives w2. Apparently I was supposed to file a schedule C for my cost basis, which I don't believe I did. I filed form 8949 instead. I have a CSV of my trades from Coinbase as the cost-basis. I'm not sure if that is legitimate enough. I'm not sure Coinbase keeps records back to 2017.... The agent told me that the next steps are to receive the documents related to the audit and file an amended tax form with schedule C.
- tldrthelaw 5y ago
  Schedule C is for business deductions, are you mining/staking as a business? If so, you'll owe self-employment tax. If not, you probably want to file it as hobby income which is Form 1040 Schedule 1. You can't take deductions from it, but I would be surprised if the deductions offset the aforementioned self-employment tax so as to make Schedule C worth it.
  - alephnan 5y ago
    Right. I have a question mark on the schedule C bit. This will be a question I will leave for the tax pros. What I know is that Coinbase reported a 1099k with an income of $99,xxx.00 In addition to the income reassessment, the IRS also pegged on: Total Self Employment Tax: $2,6xx.00 And no, I did not mine or stake.
    - deleted 5y ago
      [deleted]