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The IRS collects data on Coinbase account holders

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151–160 of 167 posts

Re: The IRS collects data on Coinbase account holders

#151
Yep - this is a major pain. The IRS rests the onus on you to best interpret their cryptic guidance on what taxes you need to pay. My team and I are working very hard at http://zenLedger.io on these problems. We have poured over hundreds of hours reading tax codes, talking with CPAs and tax attorneys about this. And we are implementing our best understandings in a tax prep software. It is more difficult than you think. We are making hard default decisions like is the same token move from one exchange to another taxable and so on. If you have specific questions about how we are implementing these, ask your questions and we will give our opinions. We are software developers, not CPAs or Tax Prep professionals. So we are taking an engineering view of making sure every tiny little rule and exception is coded and accounted for in the software. In our more premium version, we will let you change the tax policy that is then applied to your returns. We will prepare the right tax forms but you will take responsibility for sending it. Sorry, it sounds like an advertisement but I wanted to communicate how much pain and work we are going through to address exactly what you are asking.

We are very close to a public release.

Re: The IRS collects data on Coinbase account holders

#152
I thought it was hilarious that the Coinbase blog announcement of their tax reporting explicitly states that this reporting is completely useless for the 99% of Coinbase users who have transactions on other exchanges and ICO's. https://blog.coinbase.com/new-tax-tools-on-coinbase-4d259854...

I'm founding www.ZenLedger.io to help crypto investors and CPA's to comply with IRS law, aggregate ledgers across exchanges and wallets, and make everything easier. We also undo things like Coinbase falsely classifying all coin movement off their exchange as a taxable sale when they know it's most likely a non-taxable transfer. So, we help you pay less taxes. Check us out please. We have a great team of developers and business/finance professionals working hard to get it all done for you.

Re: The IRS collects data on Coinbase account holders

#153
post #125

Earlier quoted context omitted.

The IRS won't, but tools like https://www.cointracker.io can

Are you affiliated with cointracker? I only ask because you've linked to it three times in the comments here, and if you are you should disclose that fact. If you just love the service, no worries!

Bitcoin.tax seems to work ok at 10% the price. Cointracker is nice but expensive if you really trade.

Re: The IRS collects data on Coinbase account holders

#154

Earlier quoted context omitted.

"How much do I owe?" "How much do you THINK you owe?" "...Hmm, if I have everything correct, I think I owe this much" "WRONG! Time for consequences!"

Time for consequences 2 years later when our system finally processes your return and you've long since forgotten where you put that receipt for an $8 taxi ride. One of the biggest frustrations of modern life is knowing how efficient and easy things could be if these systems were designed better...and then realizing that nothing will be done about it because entrenched interests hold all the power in American governm…

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Re: The IRS collects data on Coinbase account holders

#155
post #135

Earlier quoted context omitted.

If IRS all over the world would act as a tax assistant instead of pure penalty seeker I'm sure everybody would love it. Wasted energy IMO.

The IRS is actually quite helpful, you just have to ask. For example you can request that they give you all the information they have on you. This can make filing or amending old returns significantly easier. And in my experience at least, their customer service people are courteous and genuinely helpful. It's nothing at all like the standard substandard DMV experience. Another cool thing is they have an absolutely f…

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Re: The IRS collects data on Coinbase account holders

#156
post #34

So if I made a whole $32 off of my experiment on Coinbase (invested $50 when the price was around $273.59/bitcoin and then sold when the price was around $459.69/bitcoin), will the IRS really care about their cut? I honestly expected some kind of documentation from Coinbase with respect to taxes, such as a 1099-B. I never received such a document. I also read somewhere that the IRS is only coming after people who mad…

>> Should I be concerned that they'll try to get their $10 from me and then pile on a bunch of penalties? No, despite their reputation, the IRS is pretty reasonable about stuff like this, at least in my experience. They're relentless if they think you owe a ton or were malicious, but they don't intentionally trump up penalties on the every day person.

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Re: The IRS collects data on Coinbase account holders

#157
post #56

Could the IRS do me a solid and send me what the capital gains on my crypto currency are? I'll pay the taxes--I just don't want to have to calculate the taxes. I know, I know. Intuit and H&R Block refuse to allow that to happen, but if we could stop prioritizing entrenched industries, that'd be really nice.

> I'll pay the taxes--I just don't want to have to calculate the taxes. You, me and most everyone else reasonable. In some countries, taxes are as simple as the tax agency sending you a bill or a check. But, America's love of excess capitalism means our tax code is needlessly complicated and pretty much insists on as many third party businesses to be involved as possible - every company you work for, plus anyone hold…

> But, America's love of excess capitalism means our tax code is needlessly complicated and pretty much insists on as many third party businesses to be involved as possible - every company you work for, plus anyone holding your securities, plus Intuit or some other tax preparer, and so forth.

I don't think it's fair calling this capitalism. Capitalism is the idea the the production of goods is controlled by private entities, whereas what you are talking about is a government over complicating/regulating an industry at the behest of a company. In a capitalist society, regulation is not a thing, whereas in the corporatist society I believe we live in, regulation harms the citizens through capture and reduction in effeciency.

Re: The IRS collects data on Coinbase account holders

#159
post #157

Earlier quoted context omitted.

> I'll pay the taxes--I just don't want to have to calculate the taxes. You, me and most everyone else reasonable. In some countries, taxes are as simple as the tax agency sending you a bill or a check. But, America's love of excess capitalism means our tax code is needlessly complicated and pretty much insists on as many third party businesses to be involved as possible - every company you work for, plus anyone hold…

> But, America's love of excess capitalism means our tax code is needlessly complicated and pretty much insists on as many third party businesses to be involved as possible - every company you work for, plus anyone holding your securities, plus Intuit or some other tax preparer, and so forth. I don't think it's fair calling this capitalism. Capitalism is the idea the the production of goods is controlled by private e…

I agree, this isn't capitalism but more like crony capitalism or better yet -- corporatism. Government should not pick winners or losers, much less requiring them.

Re: The IRS collects data on Coinbase account holders

#160
post #56

Could the IRS do me a solid and send me what the capital gains on my crypto currency are? I'll pay the taxes--I just don't want to have to calculate the taxes. I know, I know. Intuit and H&R Block refuse to allow that to happen, but if we could stop prioritizing entrenched industries, that'd be really nice.

The IRS won't, but tools like https://www.cointracker.io can

I've actually been meaning to look into https://github.com/robertwb/bitcoin-taxes but I'll check cointracker.io -- thanks!
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