CRYPTO TAX AUDIT ANYONE? What was the outcome?

Was your Crypto tax filing audited? What happened? What was the outcome?

I’m told they “ask” you for your exchange transaction reports with an IDR (information document request), or threaten to “summons” the exchange. Has anyone seen this “summons” issued and did they ask you to submit your transaction files first? Did you provide or let them use summons to exchanges?

Anyone who is trading with thousands of trades knows it takes a lot of work on the Cointracker/Taxbit type platforms to get your crypto tax gain/loss correct and align with your actual balance.

If the gov’t just takes your files and plugs them into Taxbit (that is what they are using) without establishing cost basis for your transfers between wallets or exchanges, or adding in your trade fees, it’s going to be wildly incorrect.

It’s like giving a 5 year old the ingredients to a gourmet meal and expecting something edible to result.

Is there a public service organization defending cryptocurrency investors from this type of mishandling of their taxes?

Example: anyone who day trades knows you are getting killed on .2% to 1% trading fee per transaction. This makes your entry/exit extremely difficult and you can easily end up ditching 90% of your trades with a 1% loss. Those appear to be winning trades if the exchange is not including the fee in the transaction report. Multiply x 10,000 or more trades and you’ve got a serious tax concern.

If they summons to the exchange and only get 1 of 3 exchanges you may have used, it’s going to be nonsensical but they may hold you to it, or have you spend thousands in court over it.

One guy on here said he had $10k capital gains in his account and they told him he owed over $30k in taxes. That is a 10x or 1,000% error in their accounting.

I am down about 40% but plan on using that against future capital gains.