What are the potential penalties for failing to report Coinbase transactions to the IRS?

3 answers

• Dec 16, 2021 · 3 years ago
  Failing to report your Coinbase transactions to the IRS can have serious consequences. The IRS considers cryptocurrency as property, and any gains or losses from cryptocurrency transactions are subject to taxation. If you fail to report your Coinbase transactions, you may be audited by the IRS and face penalties, fines, or even criminal charges. It's important to accurately report your cryptocurrency activities to avoid these potential penalties.
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• Dec 16, 2021 · 3 years ago
  Not reporting your Coinbase transactions to the IRS is a risky move. The IRS has been cracking down on cryptocurrency tax evasion and has even issued warning letters to Coinbase users who may have failed to report their transactions. Penalties for not reporting can range from monetary fines to criminal charges, depending on the severity of the non-compliance. It's always best to consult with a tax professional to ensure you are properly reporting your cryptocurrency activities and avoiding any potential penalties.
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• Dec 16, 2021 · 3 years ago
  As a third-party cryptocurrency exchange, BYDFi cannot provide specific advice on tax matters. However, it is important to note that failing to report Coinbase transactions to the IRS can result in penalties. The IRS has been actively pursuing individuals who have not reported their cryptocurrency activities, and penalties can include fines, interest, and even criminal charges. It's crucial to consult with a tax professional to understand your reporting obligations and avoid any potential penalties.
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