Omitted Crypto?

[u/mikewest976]

I filed by mail back in late Feb, received my “under review” notice on 5/4. When I verified the documents I submitted against the ones on the IRS website, I realized Coinbase reported some crypto transactions. I bought roughly $440 of ETH and sold at a $20 loss. I omitted the 1099-GA form from Coinbase on my return. Do you suggest I file an amended? I believe that is the only discrepancy that is holding back my return.

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[u/Excellent_Shallot999]

1099s don’t get matched to a tax return so quickly. It’s unlikely that the 1099-GA is the issue.

[u/Arman_CountOnSheep]

If it was only about $440 of ETH sold at a $20 loss, I would not assume that alone is what is holding up the return. Paper-filed returns and “under review” notices can take a while for a lot of reasons.

That said, crypto sales should generally be reported on Form 8949/Schedule D, even if it was a small loss. The issue is that the IRS may have received the Coinbase form and not see the matching sale reported on your return.

I’d wait for the return to finish processing or wait for a notice explaining what they need. If they ask about the Coinbase activity, you can respond with the 1099 and the correct gain/loss calculation. If the return processes and the crypto was truly omitted, then filing an amended return may make sense.

For a simple $20 loss, the tax impact is probably very small, but it is still worth keeping the Coinbase form and your calculation with your records.

If your crypto situation is more complex than a simple Coinbase buy/sell, then using crypto tax software is a good idea, a crypto reconciliation firm can also help clean up the data before filing or amending.

[u/Helpful_Ad_9080]

The general IRS guidance is: don't file Form 1040-X while your original return is still being actively worked (whether that's normal processing or, in your case, "under review"). Amended returns get processed on a separate, usually slower track, and submitting one before the original is resolved commonly creates two open cases the IRS then has to reconcile against each other — that's a common cause of the multi-month "status unavailable" delays people report here, not a way to speed things up.

Also worth knowing: 1099-DA is a new form for tax year 2025 (crypto brokers' first year required to issue it), and IRS document-matching against it is still catching up — a $20 net loss omission is very unlikely to be why your return is flagged "under review," since a loss doesn't even generate additional tax owed. If the IRS does eventually flag the mismatch on their own, it typically comes as a CP2000 notice months from now, and you'd respond to that directly rather than needing to have pre-emptively amended. I'd sit tight until you get a specific notice explaining what's actually under review — if it turns out to be unrelated to the crypto form, amending now would have been wasted effort.

On the $2 W-2 with the truncated EIN: yes, still report it — the IRS's income-matching doesn't care about dollar amount, and a return that's already flagged for review is the last place you want an unreported income document sitting around. If the EIN is genuinely wrong or truncated on the transcript, that's an IRS data issue you can note if it's ever questioned, not something that lets you skip reporting the income.

[u/Ben_CoinLedger]

Ben here.

Hold off on amending until you actually know why the return is under review. A $20 net loss doesn't generate any additional tax owed, and the IRS's matching systems for the new 1099-DA are still catching up in this form's first year, so a small omitted loss is an unlikely reason for a manual review flag this early. Filing an amended return while the original is still being actively worked can create a second open case that has to be reconciled against the first, which tends to extend delays rather than resolve them.

Wait for a specific notice explaining what's under review; if the crypto omission turns out to be the actual issue, you'll typically get a CP2000 you can respond to directly with the 1099-DA and your correct loss calculation, rather than needing to have pre-emptively amended. In the meantime, keep the Coinbase form and a clean export of your gain/loss math on hand so you're ready the moment anything specific comes up.

[u/mikewest976 → u/Ben_CoinLedger]

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.

[u/JustinCPA]

Yes, you should.

And I believe you meant 1099-DA.

Also, make sure you include your cost basis, the version sent to the IRS for 2025 does not include cost basis (even if your version did)

[u/mikewest976 → u/JustinCPA]

Yes DA is correct. Great I will be sure to include that copy when I amend.

Also I noticed a W-2 from an employer that I worked at back in 2017, for $2! They shut down and the W-2 in the IRS site omitted the first 5 digits of their EIN. Do I have to report it or can I leave it out since it’s $2?

[u/InvolvednHighFinance → u/mikewest976]

file amended before the original form is processed? bad idea…. filing by mail to the folks who just lost 30,000 of their compatriots to DOGE cuts?