How does basis not reported to IRS affect cryptocurrency investors?

3 answers

• Hasindu ChanukaApr 26, 2024 · a year ago
  When the basis is not reported to the IRS, cryptocurrency investors may face potential penalties and audits. The IRS requires taxpayers to report their basis, which is the original cost of the cryptocurrency, when they sell or exchange it. Failure to report the basis accurately can result in underpayment of taxes and may trigger an audit. It is crucial for investors to keep track of their basis and report it correctly to avoid any legal issues with the IRS.
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• Motasem AsomFeb 19, 2022 · 3 years ago
  Not reporting the basis to the IRS can lead to complications for cryptocurrency investors. The IRS has been cracking down on cryptocurrency tax evasion and has made it clear that they expect accurate reporting. Failing to report the basis can result in penalties and interest charges. It is important for investors to keep detailed records of their transactions and consult with a tax professional to ensure compliance with IRS regulations.
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• UltimumNetworkAug 19, 2021 · 4 years ago
  BYDFi, a leading cryptocurrency exchange, understands the importance of accurate reporting to the IRS. When the basis is not reported, investors may face legal consequences and financial penalties. It is crucial for investors to maintain proper documentation of their transactions and report the basis accurately to avoid any issues with the IRS. BYDFi provides resources and guidance to help investors navigate the tax implications of their cryptocurrency investments.
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