[Legions36]

Not sure what going to happen because of what the IRS has been getting at with this stuff but if you have used Coinbase or Circle for transaction to buy and sell even if you didn't save the coins then each time they say you must pay a property gain tax, all your information is given to them. Now given I have been using Coinbase since 2013 until now I'm not exactly sure how to deal with this, I have always covered my ass and not taken out more money that what I was sappost to at a time but the tax deal seems kind of crooked for the uses I have done with it. Now we have until the end of the month in March to find out what the IRS will try and do but some feedback from players would be helpful. I don't care about squaring myself up but to have to pay property gain tax on buys and sells I made even if it was for sports seems kind of bs to me, you will have to go by when you bought and sold at the time since there is no proof of me making deposits at books for this.

[Optional]

Does anyone know how far they are allowed to go with info from that application?

It's possible that they have restrictions on it's use, being so wide-ranging.

[Legions36]

Does anyone know how far they are allowed to go with info from that application?

It's possible that they have restrictions on it's use, being so wide-ranging.

I usually wouldn't be so worry some but what they are asking and wanting to do seems pretty crazy to me. Since we have given out our ssn to them this makes it even more of a problem if this gets voted in, even if you just used coinbase to make deposits with books it will still look like gains if the price of bitcoins went up once you sell it back to coinbase in any way bank or usd wallet, from my knowledge they want access for all the years of use. So this means getting each transaction used, maybe paying some fine if you didn't add this in since 13, maybe paying someone to do taxes and figure out what you really owe. This is why coinbase is fighting it because they know how bad this can go. I'm kinda worried if I just just tally everything up now just to cover my ass and take whatever as a lose because if they take this further people could get audited some how.

[Optional]

Mostly from just reading news articles, it sounded like the intent was to find people who where stashing large sums of money in bitcoin as opposed to using the traditional swiss bank account type method.

Who knows what US Feds are allowed to get away with doing these days but I find it hard to imagine in a legit legal matter them being allowed to take such a large cache of private data and just use it for a widespread fishing expedition to find any infraction they can. There should usually be some very specific guidelines about what legal use they can put the info to. I'd be looking for a copy of the order allowing it to check.

Easier for me to say that not being in the situation of course but I think I would still view it that way if I was and not be spooked into opening a can of worms on myself just yet.

[Buffalo Nickle]

People are making substantial gains on bitcoin so it is no different from a stock trade. I'd expect you will have report the transaction on your tax form just as you do a stock trade and they will eventually be providing 1099s for your transactions. The basis of those transactions will likely not be reported and if you are doing transfers strictly for sports betting, you will have a loss as a result of fees.

Not that big a deal as far as I am concerned as I do not do many transactions. But if you are doing a lot of them, you will be spending a lot of time on taxes like a daytrader.

Does not appear there will be any reporting done for 2016 so you are on the honor system.

[Buffalo Nickle]

Come to think of it, these types of transfers really cannot be reported. If you buy bitcoin for the purpose of sports betting, you send it elsewhere and the receiver sells it. So there is never any record of your selling so as far as the IRS knows, you own that forever and there is no gain to report.

If you receive bitcoin as a cashout, I suppose you would report the value of the bitcoin received and the cashout value when you sell. Those would definitely be reportable if 1099s are issued.

The IRS is just now learning about bitcoin and discovering the gains that are being made so I doubt they even know how they will handle it all.

[Legions36]

I don't mean to pry cause I know u guys know what your talking about but there are some things that need to be taken into account. For one I'm only talking about the U.S. based side of this and the places that make u put your ssn in. On top of that this isn't like just putting some chk in the bank. The IRS already classified in 2014 how to treat bitcoins, now they doing this John Doe crap for all coinbase customers not just the big guys and they want info dates back to 2013. How come they want this info from then if we don't have to deal with it? Also previous John Doe stuff they did led to big fines and tax evasion, they forced banks to give out all customer info as well. I think u guys shouldn't write this off so fast and given this is a month away u just don't know. All I know is I won't be using coinbase for withdraws anymore and i might even buy periodically so I don't have to go into full details about stuff.

[Buffalo Nickle]

I don't mean to pry cause I know u guys know what your talking about but there are some things that need to be taken into account. For one I'm only talking about the U.S. based side of this and the places that make u put your ssn in. On top of that this isn't like just putting some chk in the bank. The IRS already classified in 2014 how to treat bitcoins, now they doing this John Doe crap for all coinbase customers not just the big guys and they want info dates back to 2013. How come they want this info from then if we don't have to deal with it? Also previous John Doe stuff they did led to big fines and tax evasion, they forced banks to give out all customer info as well. I think u guys shouldn't write this off so fast and given this is a month away u just don't know. All I know is I won't be using coinbase for withdraws anymore and i might even buy periodically so I don't have to go into full details about stuff.

Coinbase is registered as a bank with identity verification. There is no John Doe crap. The IRS could simply be getting up to speed on bitcoin by trying to make sure they can make transactions reportable or they could be dealing with tax evasion or terrorist funding or any kind of nefarious activity of which probably plenty is going on with bitcoin.

I don't see any reason to be concerned as a sports bettor. It may lead to some hassle with filing your taxes but is not likely to lead to anything of any consequence.

[Legions36]

So you guys are saying as of todays date just by using Coinbase over they last few years for deposits and withdrawals nothing over 10 k at a time just leisurely we won't be hassled? And there isn't one person around here who has decided to ad this stuff up from using either coinbase or circle use and claimed anything or even reported gains or losses even though you gave out your ssn? Your also saying that we are not liable from any business we did with them prior to 2016 from using these places even though they want this info? What will also happen if we decide not to do anything about it then the IRS does win the case some how, are we then kind of screwed if we didn't send out this stuff?
I ask this because I have seen a lot of people using these exchanges and I'm pretty shocked nobody thinks about this now that the IRS has been looking at this situation. This whole area seems pretty shady to me.

[Buffalo Nickle]

So you guys are saying as of todays date just by using Coinbase over they last few years for deposits and withdrawals nothing over 10 k at a time just leisurely we won't be hassled? And there isn't one person around here who has decided to ad this stuff up from using either coinbase or circle use and claimed anything or even reported gains or losses even though you gave out your ssn? Your also saying that we are not liable from any business we did with them prior to 2016 from using these places even though they want this info? What will also happen if we decide not to do anything about it then the IRS does win the case some how, are we then kind of screwed if we didn't send out this stuff?
I ask this because I have seen a lot of people using these exchanges and I'm pretty shocked nobody thinks about this now that the IRS has been looking at this situation. This whole area seems pretty shady to me.

You are liable for all of it. Any gains should be reported according to the regulations. However, the IRS does not have any ability at this time to determine if any bitcoin transactions took place so far as I know. They are also underfunded and understaffed and do not have the resources to devote to bitcoin. Without Coinbase providing them with transaction activity, they are blind.

The risk is low but you are required to report any gains you have from bitcoin activities. The IRS cannot even stop people from getting millions of dollars from fraudulent tax returns.

[Legions36]

You are liable for all of it. Any gains should be reported according to the regulations. However, the IRS does not have any ability at this time to determine if any bitcoin transactions took place so far as I know. They are also underfunded and understaffed and do not have the resources to devote to bitcoin. Without Coinbase providing them with transaction activity, they are blind.

The risk is low but you are required to report any gains you have from bitcoin activities. The IRS cannot even stop people from getting millions of dollars from fraudulent tax returns.

Well you helped me understand this more and I will just sit back and see what happens. I don't even fully know if it looks like I'm ahead, but I probably am. Since nobody else is going through this then I guess I'm not either since it probably isn't much anyway. Thanks for the info!!!

[Buffalo Nickle]

Well you helped me understand this more and I will just sit back and see what happens. I don't even fully know if it looks like I'm ahead, but I probably am. Since nobody else is going through this then I guess I'm not either since it probably isn't much anyway. Thanks for the info!!!

We have a president that has not payed taxes since the 1970s. Anything goes!

[Legions36]

We have a president that has not payed taxes since the 1970s. Anything goes!

That's some funny sh it!!! Your so right.