Hey, new to this forum.
Here's the background on my tax question:
From about 2014 to 2015 I had Coinbase accounts in my name that I used to exchange a few thousand dollars of bitcoin with. I used bitcoin as a currency, so any profits I made were incidental - taxes owed would be about $20. I never thought to report these transactions, and since they were less than the $20k threshold that was sent to the Feds, I haven't had any issues with it.
Now, during 2017, I purchased several tens of thousands of dollars of Bitcoin in my name also through Coinbase, but under a different account. I plan to sell these eventually and pay taxes on the profit.
My question is: If I sell these coins under this 2017 account as an investment, will this somehow trigger the release of information about my old 2014-2015 accounts? I don't mind paying taxes - I just don't want to be on the IRS delinquent list.
Thanks for any help.
Of course there is a possibility that your old account would pop up because aside names that is used to identify an individual, there is always some characteristics that you might have forgotten and filled on both account that could connect the two accounts and since you are willing to pay your tax, I would suggest you carry out the trade you want to do on the old account then you are free from any tax liability and you don't end up and the defaulting list.
The other way is if you can risk it especially if you didn't do any biometric verification in the former account and this new one can just suffice as your only account or you just write to Coinbase to merge your account or close the former one since technically you are not owing any tax liability on it.