<story><title>The IRS Is Coming for Crypto Investors Who Haven’t Paid Their Taxes</title><url>https://www.wsj.com/articles/bitcoin-irs-comes-for-crypto-investors-who-havent-paid-their-taxes-11620937095</url></story><parent_chain></parent_chain><comment><author>tldrthelaw</author><text>Hate to be this guy all the time, but if your case is anything other than straightforward, and there are large amounts at stake, talk to a tax attorney (grain of salt: I am one).&lt;p&gt;Form websites and tutorials are all well and good, and will probably work out for more people than they don&amp;#x27;t, but you super don&amp;#x27;t want to screw up your taxes. When the bill comes due, it&amp;#x27;ll be years down the line, and for an unrecognizable sum.&lt;p&gt;Your state bar can put you in touch with one. Avoid folks marketing themselves as something like &amp;quot;tHe CrYpTo LaWyER.&amp;quot;</text></comment>
<story><title>The IRS Is Coming for Crypto Investors Who Haven’t Paid Their Taxes</title><url>https://www.wsj.com/articles/bitcoin-irs-comes-for-crypto-investors-who-havent-paid-their-taxes-11620937095</url></story><parent_chain></parent_chain><comment><author>cableshaft</author><text>So I buy a small amount of crypto with every paycheck, and this year is the first year I had to report selling some of those transactions that had those tiny purchases as a cost basis. It&amp;#x27;s very annoying to do it manually, as you apparently are supposed to report every single one of those weeks, and calculate what portion is from which cost basis, etc. I was feeling very overwhelmed with the thought of doing it manually.&lt;p&gt;But I tried one of those bitcoin tax websites this year, and was pleasantly surprised how seamless they made it. After paying and importing my data I had the full tax forms in minutes.&lt;p&gt;Thankfully I didn&amp;#x27;t owe anything for it last year because it was a temporary panic sell during the big dip from the pandemic happened last March or April, so I basically broke even for taxes, but thankfully I came to my senses a week later and bought back in again, so I still got to fully benefit from the bull run this past year.&lt;p&gt;But yeah, it&amp;#x27;s not worth taking the risk of getting audited, imo. I still wish it weren&amp;#x27;t a taxable event just for switching which crypto you&amp;#x27;re in though, especially if it&amp;#x27;s on the same exchange, and only got taxed when you buy goods or services take it out to USD, but oh well.</text></comment>