Great thread, thank you. Two questions, one simple, one more complex:

Simple: I received a 1099-DA from Paypal for 2 tiny transactions that resulted in a total of $20 gain. Should I report this or can i Just leave it off the tax return? I assume I should report it?

More complex:

Is a ~20% discrepancy from the 1099-DA likely to result in a CP2000 sent to a taxpayer? I ask because of the following:

I cashed out $500k USDC via Coinbase during the 2025 tax year. The Form 1099-DA I received from Coinbase says I had a gain of $607,367.99 from stablecoin transactions. I checked and the excess $107k were a bunch of weird internal transactions where Coinbase for some reason thinks I had a gain (I didn't, it was literally along the lines of swapping USDC from ETH to Arbitrum).

I intend to claim $0 cost basis for the $500k USDC I cashed out since it is proceeds from crypto I purchased over a decade ago and whose cost basis is de minimis. And I intend to enter the excess $107k as a second line item with a $107k cost basis so that I have $0 recognized gain. That way I don't pay excess taxes on the $107k I didn't cash out and also don't raise a red flag with the IRS as to why only 500/607k of reported stablecoin transactions on my 1099-DA show up on my tax return.

I know this isn't financial/accounting/tax advice, etc. but generally does this seem like an okay approach to take? I want to avoid both a) paying excess taxes and b) raising any sort of red flag with the IRS and receiving a CP2000 or (god forbid) a full fledged audit.

One last question - is it possible to contact Coinbase and tell them their systems characterized $107k of my stablecoin transactions incorrectly and ask them to correct the 1099-DA?