Should I Amend Past Tax Years or Move Forward?

Hey everyone! I’ve been holding onto some serious bitcoin gambling winnings for years in cold storage and thinking about finally cashing out. I've always reported myself as a pro gambler. So now I'm stuck deciding should I go back and fix my old tax returns or just start declaring my winnings from now on? The old winnings are mostly paid off as losses now, so I’m really unsure about the best route. Any thoughts would help!

Hi there! You’re in luck because I’ve got experience in this area. I’m a CPA and I deal with cases like yours a lot. Honestly, amending those prior years usually makes more sense. The IRS is tightening up on reporting, and we see folks getting audited for not reporting their previous gains. By fixing those old returns, you might lower the chances of an audit on your neck.

Good point! But can we clarify what country are you paying taxes in? Gambling tax laws are super different everywhere.

Yeah I hear you, good question. I’m in the US.

Got it. This is a pretty big financial crossroads for you! So here’s a quick breakdown: Option 1: Amending previous years Pros: It shows your real earnings, which is good. You might catch some lower tax rates from the past too. Cons: It can be a pain managing multiple years. And don’t forget about potential penalties for late payments. Option 2: Just moving forward Pros: It simplifies things a ton. Cons: You might miss out on deductions or lower rates you could’ve grabbed in the past.