Reporting Virtual Currency Transactions - IRS

**Arky** · 07-29-19, 09:56 AM

Hard to say. Who were you mainly doing business with? Coinbase? Someone or something triggered the IRS snoop-o-meter. Perhaps your cashouts went over a certain threshold? I heard one report they were focusing on the years 2013-2015.....

I've heard some say don't sign anything because you are creating your own noose.

On the one hand, this could be a typical IRS scare tactic to get people who had good profits back then to come forward and get squared up.

If you're really concerned about it, seek advise from a tax professional - of course, one that is well versed in crypto... It may not be that expensive to find out where you stand...

**PharaohUB** · 07-29-19, 10:15 AM

Good info thanks. I have a feeling I know what this is about then based on that timeframe. I'm not sure how I can prove I lost the BTC gambling, or if I'd even want to admit I was gambling online (only worth about 4k at the time), but if they think I'm sitting on that BTC or sold it elsewhere at a later date after the boom I can imagine they have questions. I'm not sure how they can prove anything, but on same token I have no idea how I can disprove it...

**Arky** · 07-29-19, 10:42 AM

Well, the way I understand it, the three forms they sent out - Letter 6173, Letter 6174 or Letter 6174-A - go from "not good" to "worse". Letter 6174-A is the worst....

**TheMoneyShot** · 07-29-19, 12:19 PM

Pharaoh... the only exchange known to rat on people was Coinbase. Did you do any transactions over there?

What does the letter basically state??? We believe you were involved in Bitcoin transactions... please respond and rat on yourself?

Honestly... I don't know about these stories... even from Forbes.

**raiders72001** · 07-29-19, 12:21 PM

IRS News release: http://src.bna.com/KeG
Letter 6174-A: http://src.bna.com/KeH
Letter 6173: http://src.bna.com/KeI
Letter 6174: http://src.bna.com/KeJ

**TheMoneyShot** · 07-29-19, 12:26 PM

Originally posted by raiders72001

IRS News release: http://src.bna.com/KeG
Letter 6174-A: http://src.bna.com/KeH
Letter 6173: http://src.bna.com/KeI
Letter 6174: http://src.bna.com/KeJ

Thanks for the links Raiders...

Let's be realistic though... if you aren't getting a true tax form.... and you're getting these 6173 or 6174 forms instead... IRS is spying on you. Plain and simple. No way of them knowing unless the exchange sent the regular tax obligation forms in. And... if the exchange didn't do it... IRS is spying on you.

What other way would they be getting this info?

**PharaohUB** · 07-29-19, 02:26 PM

I got the 6174. Was probably the least worst one. 6173 forces action, and 6174-a accuses you of specific transactions. 6174 just states they know i had an account. Which was true i had one at CB. First of all I never made profit on the sale of bitcoin in normal terms. If/when I was buying then transferring to sportsbook and losing my my ass every time. I was terrible at gambling a few years ago before I learned some patience. Now I can at least kind of break even. Second of all, how can they retroactively decide I was supposed to be keeping all these records, and hold me accountable later? None of these bitcoin sites I was betting at in 2013 still exist today. And at the time it wasn't the law that I had to track this as far as I'm aware? I bought them with my post tax income. Didn't make a profit. They made these tax laws later. The whole thing is stupid. This country is going to shit. Tax the shit out of middle class. Rip them off with higher interest rates on student loans then the rates they loan to banks. Then go after them with what they do with their post tax - post pay back student loan money. Look the other way if corporations do anything shady and bail out banks with my money. F OFF IRS!

**raiders72001** · 07-29-19, 02:32 PM

Originally posted by TheMoneyShot

Thanks for the links Raiders...

Let's be realistic though... if you aren't getting a true tax form.... and you're getting these 6173 or 6174 forms instead... IRS is spying on you. Plain and simple. No way of them knowing unless the exchange sent the regular tax obligation forms in. And... if the exchange didn't do it... IRS is spying on you.

What other way would they be getting this info?

Even people that filed BTC profit/loss on their taxes are getting 6174-A so it's a fishing expedition.

**raiders72001** · 07-29-19, 02:38 PM

Bitpay https://blog.bitpay.com/tax-tools/

**Arky** · 07-29-19, 02:43 PM

Originally posted by raiders72001

IRS News release: http://src.bna.com/KeG
Letter 6174-A: http://src.bna.com/KeH
Letter 6173: http://src.bna.com/KeI
Letter 6174: http://src.bna.com/KeJ

Thanks. After reading these, the Letter 6173 with sign and respond-by date actually sounds more demanding than the 6174's (no response necessary). Typical of the IRS - they are flagging people as guilty - not a hint of "maybe we got it wrong".....

**raiders72001** · 07-29-19, 02:43 PM

Originally posted by Arky

Thanks. After reading these, the Letter 6173 with sign and respond-by date actually sounds more demanding than the 6174's (no response necessary). Typical of the IRS - they are flagging people as guilty - not a hint of "maybe we got it wrong".....

I thought so too.

**PharaohUB** · 07-29-19, 02:56 PM

6173 is the worst. 6174 seems to be the "best" one to get. The more research I do I think I'll just ignore for now. If they want to find proof I made money let's see it... cause it didn't happen.

**Roscoe_Word** · 07-29-19, 05:16 PM

I got IRS Form (forget what specific form) from Coinbase a couple years ago. In one of the fields it said "transactions". That number was well below the $20,000 threshold that supposedly triggers the sending of a form.

My accountant was even a little flummoxed; but said she'll fix it by offsetting. I took it at that; and then quit Coinbase.

**TheMoneyShot** · 07-29-19, 06:10 PM

Coinbase is scum

**kashkenny120** · 07-30-19, 12:32 AM

Coinbase limits me to 25 bucks a week. Don't know any place to use other than Cash App