What are the common mistakes to avoid when filling out IRS Form 1099-B for cryptocurrency?

3 answers

• Dec 26, 2021 · 3 years ago
  One common mistake to avoid when filling out IRS Form 1099-B for cryptocurrency is failing to report all transactions. It's important to accurately report all cryptocurrency transactions, including purchases, sales, and exchanges. Failure to report these transactions can result in penalties and potential audits by the IRS. Make sure to keep detailed records of all your cryptocurrency transactions and consult with a tax professional if you're unsure about how to report them on Form 1099-B.
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• Dec 26, 2021 · 3 years ago
  Another mistake to avoid is misclassifying cryptocurrency transactions. Different types of cryptocurrency transactions may have different tax implications. For example, the tax treatment of mining income may be different from the tax treatment of capital gains from selling cryptocurrency. It's important to understand the tax rules and regulations related to cryptocurrency transactions and accurately classify them on Form 1099-B to avoid any potential issues with the IRS.
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• Dec 26, 2021 · 3 years ago
  At BYDFi, we understand the importance of accurately filling out IRS Form 1099-B for cryptocurrency transactions. One common mistake to avoid is failing to report cryptocurrency transactions that occurred on other exchanges. It's important to include all relevant transactions, regardless of the exchange they occurred on. Keep in mind that the IRS has been cracking down on unreported cryptocurrency transactions, so it's crucial to be thorough and accurate when filling out Form 1099-B.
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