Does Bitpay report to the IRS?

[JoeCool20]

When receiving from a S-book or even SBR redeemed points?

Will/does Bitpay report it to the IRS like coinbase?

Reason I'm asking is there is a "Did you receive any cryptocurrency in the last year?"

on the 2020 IRS form.

[littlekona]

Unless your moving big bucks though it remember bitpay is a pre paid card like many others like g dot or blue bird and you cant be taxed for adding funds to a pre paid card....just use it for everyday purchases too..i use mine everywhere every day

[JoeCool20]

Unless your moving big bucks though it remember bitpay is a pre paid card like many others like g dot or blue bird and you cant be taxed for adding funds to a pre paid card....just use it for everyday purchases too..i use mine everywhere every day

Thanks bro.

Hey not doubting you at all, but If the "Wizard of Optional" agrees, then I won't worry about taxes from Bitpay.

[raiders72001]

BitPay complies with the requirements of Section 6050W of the Internal Revenue Code. This Section requires payment processors to provide information to the IRS through Form 1099-K reporting.
This requirement only applies in the case of merchants that receive payments from BitPay of more than $20,000 in gross volume and more than 200 separate payments in a single calendar year.

....

[JoeCool20]

....

Thanks.

[Optional]

Thanks bro.

Hey not doubting you at all, but If the "Wizard of Optional" agrees, then I won't worry about taxes from Bitpay.

Can't really help very much with US tax stuff Joe.

I think what Raiders posted is correct, but people report different experiences on a state by state basis.

If you are using it for money transfer and selling/depositing as soon as you receive it, there won't be any significant capital gains to be taxed on.

But if you are investing or trading, it's probably smart to get some local tax advice.

[ThaWoj]

Im pretty sure every time you cashout any cryto or even trade one crypto for another it creates a taxable event.

The whole thing is bs really

[littlekona]

Im pretty sure every time you cashout any cryto or even trade one crypto for another it creates a taxable event.

The whole thing is bs really

it may be a taxable event prior but the action of depositing onto the bitpay card is not. Its a pre paid card and millions of people use pre paid cards and load with funds from payroll, social security ect. be smart and you will be fine

[Arky]

Im pretty sure every time you cashout any cryto or even trade one crypto for another it creates a taxable event.

The whole thing is bs really

It is BS. I don't think the IRS fully understands crypto - all they know is they want a piece of your action. "Oh, you made a trade and lost money? We're not interested. You made a trade and made some money? Now we're interested!" smh. Any day trader playing by the rules will have a mountain of paperwork.... They should just stick to "cash outs" - when crypto turns into dollars. They have dominion over dollars - nobody invited them into the crypto world.... effing thugs.

[play4win]

crypto ain't official so why you pay tax on it?

[JoeCool20]

Can't really help very much with US tax stuff Joe.

I think what Raiders posted is correct, but people report different experiences on a state by state basis.

If you are using it for money transfer and selling/depositing as soon as you receive it, there won't be any significant capital gains to be taxed on.

But if you are investing or trading, it's probably smart to get some local tax advice.

Thanks y'all. Opt's got the answer I'm looking for. Which is that I was just getting payouts Via BT-C

and not making capital gains on it by holding it. Therefore I have no gains to report. (IF I was going to!)

[TheMoneyShot]

crypto ain't official so why you pay tax on it?

Good point. But the Govt. makes you pay taxes on it... regardless if it's official or not.

[JassieJames]

unfortunately, I used coinbase. I paid a book through credit card and withdrew via coinbase then immediately into paypal. About $1,500 worth through 2 or 3 transactions. Will coinbase really report that small of an amount? I am in NY and not in one of those special states.

[TheMoneyShot]

unfortunately, I used coinbase. I paid a book through credit card and withdrew via coinbase then immediately into paypal. About $1,500 worth through 2 or 3 transactions. Will coinbase really report that small of an amount? I am in NY and not in one of those special states.

It's hard to say... chances are no. If you sold BTC at coinbase and then moved it to your bank then yes...

Coinbase is the absolute worse middle person to deal with. You should look for other places.

[funnyb25]

Them asking that on the 2020 tax form is strange. I just looked at the form as it asks:

At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?

So we all have to answer that question yes even though we didn't invest in crypto and make any profits, and instead lost our asses in the sportsbooks? Doesn't make sense to me....

[raiders72001]

Them asking that on the 2020 tax form is strange. I just looked at the form as it asks:

At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?

So we all have to answer that question yes even though we didn't invest in crypto and make any profits, and instead lost our asses in the sportsbooks? Doesn't make sense to me....

Definitely mark "yes". Don't need problems from the tax man.

[Arky]

Them asking that on the 2020 tax form is strange. I just looked at the form as it asks:

At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?

So we all have to answer that question yes even though we didn't invest in crypto and make any profits, and instead lost our asses in the sportsbooks? Doesn't make sense to me....

Now, that question sounds a little different than the question was in 2019. I don't think the part about interest was in there. The trouble with the 2019 question was a "yes" answer led you straight to a form where you were expected to declare profits - they made no allowance for buyer/hodler types who simply bought and held. I had a tax pro advise me (rightly or wrongly) that if no profits were taken, don't say "yes" as it would just open an unnecessary can of worms. Side note: if you were using free Turbo Tax you would have to go to pay Turbo Tax with a "yes" answer.

In 2020, I entered into some staking and interest drawing situations and fully expect to get some 1099 forms on that. You should always pay when you get 1099's.

As Optional mentioned the other day, if you're just doing quick buys and deposits the "gains" would be negligible - really not worth the hassle to you or the IRS. If you held the Bitcoin before cashing out and it went up, then technically you've made a gain so you're expected to pay tax on the gain difference - the value when you cashed out minus the value when it was acquired.

[funnyb25]

Now, that question sounds a little different than the question was in 2019. I don't think the part about interest was in there. The trouble with the 2019 question was a "yes" answer led you straight to a form where you were expected to declare profits - they made no allowance for buyer/hodler types who simply bought and held. I had a tax pro advise me (rightly or wrongly) that if no profits were taken, don't say "yes" as it would just open an unnecessary can of worms. Side note: if you were using free Turbo Tax you would have to go to pay Turbo Tax with a "yes" answer.

In 2020, I entered into some staking and interest drawing situations and fully expect to get some 1099 forms on that. You should always pay when you get 1099's.

As Optional mentioned the other day, if you're just doing quick buys and deposits the "gains" would be negligible - really not worth the hassle to you or the IRS. If you held the Bitcoin before cashing out and it went up, then technically you've made a gain so you're expected to pay tax on the gain difference - the value when you cashed out minus the value when it was acquired.

I never have held it. I get it from book to wallet, straight from wallet to Gemini, and straight to bank. Never sat in a wallet for for more than a few minutes. And my lucky ass usually lost a tiny bit of value if anything, but nothing to even complain about. I will mark yes, cuz I don't want to lie on this form but after they see "yes" then what? Got advice from another poster to just mark yes as well, but it is confusing as to why it is there. So everyone who marks yes is getting audited? Lol

[TheMoneyShot]

I never have held it. I get it from book to wallet, straight from wallet to Gemini, and straight to bank. Never sat in a wallet for for more than a few minutes. And my lucky ass usually lost a tiny bit of value if anything, but nothing to even complain about. I will mark yes, cuz I don't want to lie on this form but after they see "yes" then what? Got advice from another poster to just mark yes as well, but it is confusing as to why it is there. So everyone who marks yes is getting audited? Lol

It gets very technical when you take that BTC and sell it at Coinbase for cash. You're asking for trouble. Unless Coinbase has changed their procedure? Years back they hung out everyone to dry. Piss on them... they didn't have to do that to people. Way too technical. On small $1,500 sales. Totally ridiculous.

It forced you to open your hand to the IRS. Nobody needs the headache.

[funnyb25]

It gets very technical when you take that BTC and sell it at Coinbase for cash. You're asking for trouble. Unless Coinbase has changed their procedure? Years back they hung out everyone to dry. Piss on them... they didn't have to do that to people. Way too technical. On small $1,500 sales. Totally ridiculous.

It forced you to open your hand to the IRS. Nobody needs the headache.

I used Gemini, not Coinbase. I dunno. Just stating facts on what I do. I am down so much money gambling it isn't even funny. Of course I will have a ton of cashouts, but not nearly in the same ballpark on what I have lost. Entire thing seems ridiculous. Come after someone who is down because there are a bunch of Bitcoin to USD sales?

[Arky]

I never have held it. I get it from book to wallet, straight from wallet to Gemini, and straight to bank. Never sat in a wallet for for more than a few minutes. And my lucky ass usually lost a tiny bit of value if anything, but nothing to even complain about. I will mark yes, cuz I don't want to lie on this form but after they see "yes" then what? Got advice from another poster to just mark yes as well, but it is confusing as to why it is there. So everyone who marks yes is getting audited? Lol

Well, that's a situation where I would say "no". Keep in mind I'm not a tax professional but again, if you don't get any forms, you're not obligated to pay. Just make sure you have the documentation to prove your side of the story (emails, CSV downloads, etc.) if you get audited.
In your situation, it sounds like the penalties and fines would be chump change. I wouldn't waste my time.

[funnyb25]

Well, that's a situation where I would say "no". Keep in mind I'm not a tax professional but again, if you don't get any forms, you're not obligated to pay. Just make sure you have the documentation to prove your side of the story (emails, CSV downloads, etc.) if you get audited.
In your situation, it sounds like the penalties and fines would be chump change. I wouldn't waste my time.

I never even thought of it as I am not profiting on anything, but i delete all of the deposit and cashout emails. I mean, I have all of the credit card statmenets from the beginning of time of all my deposits to random clothing stores in dandgon china and shit which was to the books as we all know.

[Ghenghis Kahn]

If you do a lot of shady shit on our taxes where you're a high risk to get audited, then say "yes" otherwise, just put "no".

These are the same people that were sending out stimulus checks to whole bunch of dead people and people that don't even live in the US any longer.

[Arky]

If you do a lot of shady shit on our taxes where you're a high risk to get audited, then say "yes" otherwise, just put "no".

These are the same people that were sending out stimulus checks to whole bunch of dead people and people that don't even live in the US any longer.

That's a good point. Nothing draws the IRS's attention faster than a bunch of claimed deductions....

I got audited once around 1990, IIRC. The lady that did my taxes took all sorts deductions out. I went along because I didn't know any better. Busted. Her, too.

[raiders72001]

If you say "no", you're guilty of perjury. You don't want that hanging over your head.

[funnyb25]

If you say "no", you're guilty of perjury. You don't want that hanging over your head.

Read somewhere from a tax guy, but don't trust random people that the question on the tax from originated from people using crypto to buy and sell assets. So if you sell a car for 30k crypto and sell it for 15k there is a 15k crypto gain. No clue how much merit there is to that theory. Lol

[Ghenghis Kahn]

LOL Perjury... If it makes you sleep better at nights, say "yes"

Look at all the people in politics. How are they so wealthy? Their annual incomes aren't that high. I'm not a financial advisor but don't be slaves to the system. Do what those politicians and rich people do, bend the rules a little. Just be smart about it.

[Arky]

If you say "no", you're guilty of perjury. You don't want that hanging over your head.

You're probably right but it's still a sneaky, underhanded question by the IRS. They're playing on people's fear of going to jail to admit something. They're fishing for easy catches they can extort and names they can put on a list they want to look into later....

The question doesn't have a "none of your fkn business" check box.... lol

[funnyb25]

You're probably right but it's still a sneaky, underhanded question by the IRS. They're playing on people's fear of going to jail to admit something. They're fishing for easy catches they can extort and names they can put on a list they want to look into later....

The question doesn't have a "none of your fkn business" check box.... lol

I don't like the question. Ive sold shit tons of crypto, but never held it for profit. Used it to recover gambling credit card deposits that I lost my ass on. I've done nothing but lose, but "they" don't know that.

[Arky]

I don't like the question. Ive sold shit tons of crypto, but never held it for profit. Used it to recover gambling credit card deposits that I lost my ass on. I've done nothing but lose, but "they" don't know that.

Yep. And when you say "yes", you have to prove you had losses. They won't gain anything but you will have tons of paperwork to assemble to show you had losses.

[funnyb25]

Yep. And when you say "yes", you have to prove you had losses. They won't gain anything but you will have tons of paperwork to assemble to show you had losses.

Well ya, I have credit card statements from the beginning of time. As long as they know or believe that my hundreds of thousands of credit card deposits were to XL Women's Clothing store in Shangzou, China, and to TML Electronics in Bangledesh and shit. That would be a lot of clothes and electronics.

[funnyb25]

The more I think about it, the more fuked up that question is. If you win $10 BTC in a SBR Contest, or bought BTC from the SBR store, you need to mark "yes" on that box or else, you are technically lying to the Feds. It is an amazingly retardly put question.

[raiders72001]

Yep. And when you say "yes", you have to prove you had losses. They won't gain anything but you will have tons of paperwork to assemble to show you had losses.

You don't have to prove anything by answering yes unless you trade.

[raiders72001]

Why the Crypto Question on Form 1040 Matters

The 1040 crypto question can only be answered “yes” or “no”—not a lot of wiggle room, legally speaking. And yet this simple question could potentially land crypto traders in jail if they answer falsely.
When you’re dealing with the IRS, the difference between small penalties and severe ones typically comes down to the concept of willfulness. Did you knowingly try to cheat the IRS, or did you make an honest mistake? The IRS wants to make an example of willful tax violators and will often treat them much more harshly.
If you check “no” to the question—“At any time in 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?”—when you did in fact engage in any of those activities, it will be very difficult to argue that you made a non-willful mistake.

...........

[funnyb25]

You don't have to prove anything by answering yes unless you trade.

But how will they know the difference between traders and those that just use it to move from book to bank?