I engaged in crypto trading in 2021, incurred a $600 loss, yet Robinhood reported $51K in proceeds on my 1099 form. This sparked an IRS notice for $13K. What should I submit?
Based on my experience when facing IRS discrepancies, I would recommend submitting a detailed explanation with a comprehensive transaction ledger that outlines every trade, ensuring discrepancies are clearly noted. I encountered similar difficulties and resolved them by including all relevant documents like brokerage statements, corrected 1099 forms, and any communications from your platform. It is imperative to support your losses with thorough documentation. Consulting with a tax professional might also help clarify and resolve the case, ensuring that the IRS is presented with accurate and complete information.
hey, im in a similar boat. you havent tho regather all trade records, screenshots & emails showing losses. also consider asking robinhood for a fixed 1099. im no expert but clear, detailed evidence might help your case.
hey, im curious bout your situation… it kinda baffles me how these numbers sometimes dont add upp. i been thinkin if perhaps some trades were reported incorrectly or if there was added income that got lumped in the 1099 - have u considered reaching out directly to robinhood to see if there are any additional trade details they can provide? also, sometimes its helpful to gather all supportin docs like bank statements and the exact trade history from your own records. im wonderin how u plan to detail those losses in ur submission to the irs? would u say there might be some steps to tie back the reported proceeds to the actual loss incurred? curious to hear what others in a similar boat have tried and what exactly worked for them.
I have faced a similar issue with my crypto reports causing IRS discrepancies. My experience showed that clarifying each entry with documented evidence from trade logs and bank records was essential. A systematic review of device-provided data versus the 1099 report helped identify any misstatements or additions that could inflate your proceeds. I recommend remaining proactive, meticulously matching your own records to the reported figures, and considering professional advice if the mismatches persist. Ensuring clarity in your submission can often lead to a more favorable resolution when dealing with the IRS.