How does the failure to report the cost basis of my digital assets on a 1099-B form affect my tax obligations to the IRS?

3 answers

• Feb 17, 2022 · 3 years ago
  Failing to report the cost basis of your digital assets on a 1099-B form can have serious consequences when it comes to your tax obligations. The IRS requires accurate reporting of all income, including gains from the sale or exchange of digital assets. If you fail to report the cost basis, the IRS may consider it as unreported income, which can lead to penalties and interest charges. It's important to keep accurate records of your digital asset transactions and report the correct cost basis to avoid any issues with the IRS.
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• Feb 17, 2022 · 3 years ago
  Not reporting the cost basis of your digital assets on a 1099-B form can result in the IRS questioning the accuracy of your tax return. This can trigger an audit, where the IRS will closely examine your financial records and transactions. If they find discrepancies or unreported income, you may be subject to additional taxes, penalties, and interest. It's crucial to accurately report the cost basis of your digital assets to avoid any potential legal and financial consequences.
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• Feb 17, 2022 · 3 years ago
  Hey there! So, if you forget to report the cost basis of your digital assets on a 1099-B form, the IRS might not be too happy about it. They require accurate reporting of all income, including gains from digital asset transactions. If you fail to report the cost basis, the IRS could view it as unreported income, which means you might have to pay penalties and interest on top of your regular taxes. It's always a good idea to keep track of your digital asset transactions and report everything correctly to avoid any trouble with the taxman. Hope that helps!
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