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Author Topic: Do exchanges/services report your transactions to the IRS?  (Read 2155 times)
Alley (OP)
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March 16, 2015, 12:45:32 AM
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Places like coinbase and circle.  Are they reporting to the IRS what your buying and selling bitcoins for?
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Karartma1
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March 16, 2015, 01:02:21 AM
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If you are US resident or US citizen they have to notificate IRS, that's the legal procedure. USA is very strict about AML/KYC. I'm not USA citizen so no worries for me. Smiley
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March 16, 2015, 01:30:34 AM
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So do they send out a 1099 then?
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March 16, 2015, 10:37:12 AM
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As Karartma1 noted, he is not a US citizen, and clearly he doesn't know the IRS from FinCen.  That having been said, I have no clue if which US-based exchanges report earnings to the IRS.  Moreover, I am not an accountant or a lawyer and nothing in this post should be construed as financial or legal advice.  However, I will say that, to the best of my knowledge, stock brokerages only recently had to start reporting income on stocks, funds, and options, each in a separate year.  I will also say that while the IRS classifies virtual currency as property, that does not necessarily expose it to the same filing rules created specifically for stock, fund, and option securities.  Unfortunately, I cannot tell you for sure that brokerages are or aren't legally required (or optionally allowed) to report exchanges to the IRS, but I suspect they would have to report them on a 1099-B, and I would expect them to be required to send a 1099-B to you if they sent one to the IRS.  But again, I am not an accountant or a lawyer, and for all I know the US government could do something secretive and non-standard here just because.
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March 26, 2015, 07:28:04 AM
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depend on when you live, in usa they are forced to, other country are free from this, bitcoin is still not regulated there

So do they send out a 1099 then?

i remember IRS said you need to pay taxes if you exceed $600 in bitcoin in one year
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March 26, 2015, 09:08:08 AM
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depend on when you live, in usa they are forced to, other country are free from this, bitcoin is still not regulated there

So do they send out a 1099 then?

i remember IRS said you need to pay taxes if you exceed $600 in bitcoin in one year
Why are you just making stuff up?  Provide some links.  To the best of my knowledge, the IRS never said that, and when it comes to personal property, which is what the IRS said to treat bitcoin as, you must report all gains, there is no dollar limit.  As for 1099s, what makes you think they are forced to?  Read my post just above yours.

ETA:  Nevermind, I see you responded to several threads with short pointless posts, you are clearly just pushing your signature ad.
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March 26, 2015, 12:32:31 PM
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well you are wrong, i didn't made that up just for my signature

http://www.investopedia.com/university/definitive-bitcoin-tax-guide-dont-let-irs-snow-you/

Q-12: Is a payment made using virtual currency subject to information reporting?
A-12: A payment made using virtual currency is subject to information reporting to the
same extent as any other payment made in property. For example, a person who in the
course of a trade or business makes a payment of fixed and determinable income using
virtual currency with a value of $600 or more to a U.S. non-exempt recipient in a taxable
year is required to report the payment to the IRS and to the payee. Examples of
payments of fixed and determinable income include rent, salaries, wages, premiums,
annuities, and compensation.


i just confused pay with report, but the 600 rule is right
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March 26, 2015, 03:51:17 PM
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well you are wrong, i didn't made that up just for my signature

http://www.investopedia.com/university/definitive-bitcoin-tax-guide-dont-let-irs-snow-you/

Q-12: Is a payment made using virtual currency subject to information reporting?
A-12: A payment made using virtual currency is subject to information reporting to the
same extent as any other payment made in property. For example, a person who in the
course of a trade or business makes a payment of fixed and determinable income using
virtual currency with a value of $600 or more to a U.S. non-exempt recipient in a taxable
year is required to report the payment to the IRS and to the payee. Examples of
payments of fixed and determinable income include rent, salaries, wages, premiums,
annuities, and compensation.


i just confused pay with report, but the 600 rule is right
Fair enough, but the 600 rule is right for non payroll payments, not for trading.  The OP question was about brokerages, which aren't paying or being paid and have a different set of rules that does not include reporting personal property basis if it even includes reporting sells of personal property.

ETA:  OK, the OP wasn't specifically about exchanges, it included services.  Regardless, filing 1099s is the responsibility of the payer, not the payee, so services don't report your transactions, you do.  More importantly, services should be business and business should be exempt.  So, per that rule, if you pay over $600 in bitcoin to your neighbor's 12 year old to mow your lawn and shovel snow over the course of a tax year, you would technically need to get his SSN and write up a 1099 for him.  He then reports that he earned that money, but he only reports it was from you because you gave him a 1099.
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March 29, 2015, 01:45:29 AM
 #9

depend on when you live, in usa they are forced to, other country are free from this, bitcoin is still not regulated there

So do they send out a 1099 then?

i remember IRS said you need to pay taxes if you exceed $600 in bitcoin in one year

I like how governments start to grab & loot everything they see in their path.

There is just no place on Earh which is free from their powerhungy filthy hands, they even claim lands in Antarctica ...

But if you think other countries are free from these, just wait until those governments find out aboit Bitcoin!

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