What are the common mistakes to avoid when filing 1099b for cryptocurrency activities?

1 answers

• Nov 30, 2021 · 3 years ago
  When filing 1099-B for cryptocurrency activities, it's crucial to avoid common mistakes that can lead to penalties and audits. Here are some key errors to avoid: 1. Failing to report all transactions: Every cryptocurrency transaction, no matter how small, needs to be reported to the IRS. Failing to do so can result in penalties and potential audits. 2. Not properly calculating gains and losses: Accurately calculating gains and losses for each transaction is essential. Consider the cost basis, fair market value, and applicable fees to ensure accurate calculations. 3. Not keeping proper records: Detailed records of cryptocurrency transactions are necessary for filling out Form 1099-B and can serve as proof in case of an audit. Keep track of dates, amounts, and transaction types to avoid errors. By avoiding these common mistakes and seeking professional advice if needed, you can ensure a smooth and accurate filing of Form 1099-B for your cryptocurrency activities.
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