You are viewing a single comment's thread from:
RE: Coinbase Pushes Back Against The IRS With Class-Action (The Cryptoverse #167)
I love the return of the Market Roundup - even if it's now a short blurb.
On Coinbase vs IRS, what I don't understand however, don't the IRS have the 1099's from Coinbase on their users already?
Sorry, I'm from the UK. Could you tell me what a 1099 is please?
A form 1099-B would be filed with the IRS for any brokerage account by the exchange (I.e. e-trade, Vanguard, etc). This would report any account proceeds (and usually cost basis as well) directly to the IRS.
If the account-holder fails to include the proceeds in their tax return, the IRS knows (from Brokerage) that the filer forgot/omitted the proceeds on the tax return and it will be flagged for a letter/review/audit/etc.
Instructions for Form 1099B - IRS.gov
https://www.irs.gov/pub/irs-pdf/i1099b.pdf
Are you serious? The broker gives details of your trading profits to the IRS directly??? That's incredible.
That's the tip of the regulatory nightmare called the IRS.
Any payments greater than $600 for services require the filing of a 1099-MISC by payor reporting to the IRS the payee information as well.
The IRS wants all the information - the ACA (Obamacare) originally required all annual payments to anyone for anything greater than $600 be reported. That provision was removed from the law before it took effect.
See all the great variants of 1099 on Wikipedia. https://en.m.wikipedia.org/wiki/Form_1099