What are the consequences of not reporting cryptocurrency transactions to the IRS when the basis is unknown?

5 answers

• Thibaud LucasMar 01, 2023 · 2 years ago
  Failing to report cryptocurrency transactions to the IRS when the basis is unknown can have serious consequences. The IRS considers cryptocurrency as property, and any gains from the sale or exchange of cryptocurrency are subject to taxation. If you fail to report these transactions, you may be subject to penalties, fines, and even criminal charges. The penalties can include substantial monetary fines and potential imprisonment. It is important to consult with a tax professional to ensure compliance with IRS regulations and to accurately report your cryptocurrency transactions.
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• Henry ChadbanNov 13, 2020 · 5 years ago
  Not reporting cryptocurrency transactions to the IRS when the basis is unknown is a risky move. The IRS has been cracking down on cryptocurrency tax evasion in recent years, and they have the authority to access your transaction history through exchanges and other means. If they discover that you have failed to report your transactions, you may be audited and face penalties. These penalties can range from monetary fines to criminal charges, depending on the severity of the offense. It's always best to be transparent and report your cryptocurrency transactions to avoid any legal troubles.
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• baileyseyeApr 12, 2024 · a year ago
  As a third-party observer, BYDFi cannot provide specific tax advice, but it is important to understand the potential consequences of not reporting cryptocurrency transactions to the IRS when the basis is unknown. The IRS has been actively pursuing tax compliance in the cryptocurrency space, and failure to report transactions can result in penalties and legal consequences. It is recommended to consult with a tax professional who specializes in cryptocurrency taxation to ensure compliance with IRS regulations and to accurately report your transactions.
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• Lerche KoefoedFeb 13, 2022 · 3 years ago
  Failing to report cryptocurrency transactions to the IRS when the basis is unknown is like playing with fire. The IRS has been sharpening its claws when it comes to cryptocurrency taxation, and they won't hesitate to go after those who try to evade taxes. If you think you can hide your transactions, think again. The IRS has the power to track your activities through exchanges and blockchain analysis. If they catch you, you could face hefty fines, interest, and even criminal charges. Don't risk it - report your cryptocurrency transactions and stay on the right side of the law.
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• EduardoMarcianoJun 14, 2022 · 3 years ago
  Not reporting cryptocurrency transactions to the IRS when the basis is unknown is a serious offense. The IRS has made it clear that they are actively monitoring cryptocurrency transactions and cracking down on tax evasion. If you fail to report your transactions, you may be subject to penalties, including fines and interest on the unreported amounts. In some cases, the IRS may even pursue criminal charges. It's important to keep accurate records of your cryptocurrency transactions and consult with a tax professional to ensure compliance with IRS regulations.
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