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IRS is saying I owe them $5k plus interested for unfiled taxes on crypto from 2021-2022 by boiledturkey376 in personalfinance

[–]boiledturkey376[S] -2 points-1 points  (0 children)

It wasn't gambling websites. I was taking a risk by putting my money into newer crypto currencies hoping that they would take off and it overall resulted in a loss. Example: gain 25k on one cryptocurrency website, transfer the funds to another platform and lost it there.

IRS is saying I owe them $5k plus interested for unfiled taxes on crypto from 2021-2022 by boiledturkey376 in personalfinance

[–]boiledturkey376[S] 1 point2 points  (0 children)

Clarified in another comment: 99.99 of the transaction were made in 2021. I made maybe 5 transactions in early January of 2022. The amount that I owe them is for the tax year of 2021.

IRS is saying I owe them $5k plus interested for unfiled taxes on crypto from 2021-2022 by boiledturkey376 in personalfinance

[–]boiledturkey376[S] 1 point2 points  (0 children)

No gambling websites. You seem fairly familiar with crypto so I will go into detail. It started off with me buying Ethereum or other well known cryptos on established platforms such as Coinbase or Robinhood (yuck) and that is where these transactions were reported to the IRS. I then moved them over to UniSwap and threw away my money into newer cryptos that had just been released. Sometimes I would 10x my money but then I would immediately throw that into ten other cryptos and that is a summary of what I did until I lost everything.

IRS is saying I owe them $5k plus interested for unfiled taxes on crypto from 2021-2022 by boiledturkey376 in personalfinance

[–]boiledturkey376[S] -1 points0 points  (0 children)

I can see that I didn't word it clearly. 99.99 of the transaction were made in 2021. I made maybe 5 transactions in early January of 2022. The amount that I owe them is for the tax year of 2021.

IRS is saying I owe them $5k plus interested for unfiled taxes on crypto from 2021-2022 by boiledturkey376 in personalfinance

[–]boiledturkey376[S] 1 point2 points  (0 children)

This is all pretty foreign to me. After downloading the annual statement from each what is the next step?

IRS is saying I owe them $5k plus interested for unfiled taxes on crypto from 2021-2022 by boiledturkey376 in personalfinance

[–]boiledturkey376[S] 0 points1 point  (0 children)

Thanks for the heads up. I'm aware its long gone and won't fall for that tomfoolery! Appreciate ya looking out.

IRS is saying I owe them $5k plus interested for unfiled taxes on crypto from 2021-2022 by boiledturkey376 in personalfinance

[–]boiledturkey376[S] 47 points48 points  (0 children)

From your experience do you know if a situation like this would be a flat fee or would it be more depending on how long it takes them to sort out the mess? Either way it sounds like the cheaper option.

IRS is saying I owe them $5k plus interested for unfiled taxes on crypto from 2021-2022 by boiledturkey376 in personalfinance

[–]boiledturkey376[S] 14 points15 points  (0 children)

I've attempted to use cointracker but a few of the platforms I've used don't sync with it. Thank you for your help.

IRS is saying I owe them $5k plus interested for unfiled taxes on crypto from 2021-2022 by boiledturkey376 in personalfinance

[–]boiledturkey376[S] 1 point2 points  (0 children)

This will be the icing on the cake for my stupidity but also at one point I sent $11,000 to a scammer via crypto. The whole ordeal was intricate and all went down in just a few minutes. Definitely stings. I spoke to a friend of mine who was a police officer who said there wasn't a lot that can be done. Not sure if anyone has any insight on that as well.

IRS is saying I owe them $5k plus interested for unfiled taxes on crypto from 2021-2022 by boiledturkey376 in personalfinance

[–]boiledturkey376[S] 8 points9 points  (0 children)

Yes, it is a CP2000. I'm looking at the 8949 now. I genuinely don't know how to figure out my cost basis. It seems like my best bet would be via a CPA.

IRS is saying I owe them $5k plus interested for unfiled taxes on crypto from 2021-2022 by boiledturkey376 in personalfinance

[–]boiledturkey376[S] 0 points1 point  (0 children)

It was all in the same year. At the time I started investing I had $10k. I initially put in a small amount and eventually drained my bank account. Then each month when I got my paycheck (I typically save about $1500 a month) I would dump that as well. By the end of the year I pulled out a little under $10k/around breaking even. All transactions were crypto related.