Universal Tracking Back – Data Still Destroyed | Hacker News Reader

Universal Tracking Back – Data Still Destroyed

community.cointracker.io

34 pointsguiambros7 comments

For further context: CoinTracker enabled "Per Wallet Tracking" by default for users [1], which means transfers between an exchange and a cold wallet would be taxed as a sell transaction.

CoinTracker alleges this was done to comply with upcoming regulations in the US. But in practice the new bill [3] doesn't say that you need to pay taxes when moving between your wallets. It just says the exchanges should issue a 1099 with these movements, so you may get audited due to the discrepancy, and will need to prove you really own the cold wallet. I'm fine with that.

Obviously this created havoc for users, which protested very loudly [2]. They eventually brought back "Universal Wallet Tracking" as it was before, but... they completely screwed up all previous data, including previously matched transactions, and cost basis. In some cases for hundreds or thousands of transactions.

Earnings reports already filled with the IRS may have to be reprocessed and re-submitted, and taxes (+ fines and interest) paid accordingly, or you'd be running the risk of not having the data to prove your calculations in case of an audit.

It's incredible how bad they handled this situation.

[1] https://support.cointracker.io/hc/en-us/articles/12407462337...

[2] https://community.cointracker.io/t/cointracker-you-seriously...

[3] https://www.cardin.senate.gov/wp-content/uploads/2022/09/Inf...

Can you blame them? These companies can steal money from you and pretty much anything else and people will keep using them. Doesn't matter what they do really if there are no major consequences.

Those Excel spreadsheets your friends teased you about are suddenly looking pretty good.

cointracker should probably curl up and die after this and their data breach

I’d been wondering why I’d been getting so many crypto spam emails recently, but then I saw an email from them about the breach.

All makes sense now, since I made an account with them a few years ago but forgot about it.

Did you use or try Zen Ledger?

If so, they had a breach and have been very quiet about it too [0]

[0] https://news.ycombinator.com/item?id=34543078

CoinTracker is on my shitlist. My only transactions last year were staking rewards for holding tezos and etherium 2 on Coinbase and yet they want me to pay $179 for the premium tax plan.

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