Are there any penalties for not reporting the cost basis on a 1099-B for my cryptocurrency trades?

3 answers

• Dec 27, 2021 · 3 years ago
  Failing to report the cost basis on a 1099-B for your cryptocurrency trades can have serious consequences. The IRS requires accurate reporting of all income, including cryptocurrency gains. If you fail to report your cost basis, you may be subject to penalties and interest on the unreported amount. The penalties can vary depending on the circumstances, but they can include fines and even criminal charges in extreme cases. It's important to consult with a tax professional to ensure you are properly reporting your cryptocurrency trades.
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• Dec 27, 2021 · 3 years ago
  Not reporting the cost basis on a 1099-B for your cryptocurrency trades can lead to penalties from the IRS. These penalties can range from monetary fines to additional taxes owed. The severity of the penalties depends on the amount of unreported income and the intent behind the failure to report. It's always best to accurately report your cryptocurrency trades to avoid any potential penalties or legal issues.
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• Dec 27, 2021 · 3 years ago
  As a third-party cryptocurrency exchange, BYDFi cannot provide specific tax advice. However, it is important to note that failing to report the cost basis on a 1099-B for your cryptocurrency trades can result in penalties from the IRS. The penalties can include fines and interest on the unreported amount. It's recommended to consult with a tax professional to ensure compliance with tax laws and reporting requirements.
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