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> the irs hasn't offered too much guidance on how this tax change works.

They didn't offer too much guidance for trading crypto either. I reported my trades as you would for stocks. They ended up auditing me and charging me for $300k in profits when I made $3k (they did not recognize cost basis of my trades, yet decided to respect the sale proceeds) circa 2015. Meanwhile, people who did not report at all probably got off the hook.

Something doesn't sound right about this. On what grounds did they not recognize your cost basis?

Edit: I'm guessing you acquired the crypto through some means that doesn't keep records/report to the IRS. In that case, what choice does the IRS have? You should never purchase an investment without looking toward the tax implications at the end of the year. It sounds harsh, but you should have known that claiming a cost basis you have no proof for would never fly.

Uhh, no exchange was reporting crypto tax basis to the IRS in 2015.

I'm assuming gp won on appeal.

Thanks!! This is very informative

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