Heads up: IRS and Coinbase issues

If you're holding coins on Coinbase and just leaving them there, be careful. The IRS can find out about any profits even if you don’t actively use your account. Coinbase turns over a bunch of info to the IRS, which could lead to tax losses for you. Crazy, right? Anyone else worried about this?

Saw some posts on here about tax reports not being accurate. US tax laws are super complex and every crypto trade has to be noted and reported yearly. From what I get, even minor errors can cause big headaches. Not an expert but do your research, folks. Don't wanna be caught off guard come tax time. Also what’s up with those Coinbase reports? They can’t really screw things up that badly, can they?

Nah, that’s not how it works. If your account is inactive and you haven’t sold anything, how can Coinbase report anything to the IRS? That’s just not possible. They only report actual transactions, right? The earlier mention of Coinbase causing audits is likely due to their own reporting errors like double transactions. Keep your tax forms straight and you should be fine.