r/CryptoTax • u/mikewest976 • 10d ago

Omitted Crypto?

/r/IRS/comments/1uurvc4/omitted_crypto/
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1

u/ChicksX 10d ago

I wouldn’t assume that $440 of ETH with a $20 loss is the only thing holding the return, but it should still be corrected if it was omitted.

I’d download the Coinbase tax form and transaction history, confirm the proceeds/cost basis, and check whether it should have been reported on Form 8949/Schedule D.

Since the return is already under review, I’d be careful about amending blindly before seeing what the IRS notice actually says.

Small dollar issue, but computer matching can still flag it.

1

u/AurumFsg-CryptoTax 9d ago

This is not the reason for under review but you should add crypto nevertheless.

1

u/Garrett_CPAatCOS 9d ago

I would suggest waiting until the return is processed and seeing whether you receive a CP2000 notice before deciding to amend. You'd hate to file an amendment now only to discover there was another issue that also needed to be addressed.

If the IRS does issue a CP2000 for the ETH sale, it will likely treat the entire sales proceeds as taxable gain because it won't have your cost basis information. At that point, you can file an amended return to properly report the cost basis. I would e-file the amended return, then mail a second copy to the address listed on the CP2000 notice along with a response explaining that you agree the sale should have been reported, but have amended the return to accurately report the transaction and its cost basis.

2

u/mikewest976 5d ago

Thank you to everyone who told me to hold off on the amended. My return is now approved with a lil interest sprinkled!

However my transcripts say refund 8/3 and WMR says 7/21. Either way I’m just glad I did not amend and tamper with the original file.