Currently have an IRS audit -
They request information they know the user can't properly supply if they have big transaction histories, have been using multiple coins, multiple exchanges, multiple games, multiple interactions over multiple years. You start to get panicked even when you have done nothing wrong.
Someone who has entered crypto gains since 2014 ( trying to pay taxes ) even before anyone was sure how to handle crypto I am afraid are going to get hurt badly. I am not sure but there is a possibility that people who never filed crypto might actually get it easier ( which is wrong, but it is what it is ).
The IRS innocently sends you requests... do you get a lawyer? Your claimed taxes equal about what you have in assets or taken out to your bank over the years....
Did you properly report exactly? Probably not..... too late you have an audit, no amnesty to go back and amend now.... Hire a lawyer? It is so damn stressful you can't sleep and you don't even know how to comply without possibly putting yourself in jeopardy. So Again, you have done nothing wrong, tried to pay your taxes, are probably going to get penalties.
The question becomes hire a lawyer/cpa service to rebuild your history? Maybe.... 10k -20k, more stress you know you didn't do much wrong but are at a complete loss on how to move forward without hurting your financial future, your family is stressed....
So I guess I hire a lawyer that can rebuild a complex history filled with gaming transactions, trading... going to cost an arm and a leg fun times. Such a travesty of justice, no other choice...
If anyone has a similar experience and would like to share what to expect and what you did and what you learned, please share here or in a private message.
I hope to be able to come back and properly walk people through start to finish some day. Right now I have been up for weeks trying everything to get whatever information I can and there is just nothing out there.
Feel lucky if you only have a few buys or sells, if you have a transaction history of say a gamer ( not gambling ) I hope you don't ever go through this or the stress. The rules need to be clear, they need to be in the realms where the taxpayer has a chance to comply. Currently it is not, and it is BS to put it mildly.
Posted Nov 27, 2020, 8:26 PM UTC · edited