Crypto Taxes (coinbase pro and binance)
Will IRS be able to track if I don’t report my gains there? And if they can track, what’s the penalty? (Traded for the first time this year so please help)
I hate how these platforms don’t come with any type of tracking. You should use a google streets to track by hand and make sure you pay correctly
Coinbase used to state somewhere that they don’t communicate with the IRS. Can’t find it now. Crypto taxes are evolving quickly, they may even be different by tax time.
Coinbase does report to IRS if you made above $600 in gain. You need to add it to your tax return otherwise IRS will come back for underreporting income. Penalty is case by case based on how big your underreporting was and how much time has elapsed. For ex, IRS may come back to you about this next year or the year after and then charge you interest and penalty for all that time. Not worth it.
Yes and large to jail.
Just use TurboTax
Coin base reports. Binance Us reports too though?