I can what can be termed in a very unique tax situation.To help put things in perspective here is the entire story and feel free to guide me in any way possible if you have any such experience and knowledge about the issue.
- We did a small ico and the ethers accumulated were drained to our local wallet. This was when 1 Ether was $1400 in January 2018 and since like any law abiding citizen asked my cofounder to create a coinbase account to move the ico raised company ethers (worth around $600000 at that time) while providing the company bank account details to coinbase while opening the new account, i did not have any plans of selling the ethers until a couple of days later when ether started crashing and we panicked and i sold the ethers for a huge loss and the amount stood at $400000 and I then made a transaction again as we had some inquiry from the securities board and repurchased at a loss a lot lesser ethers than we previously had.
At this point we asked COINBASE to produce the statement so we may submit the details to the Securities board. We also sent them a scanned letter copy from securities to us asking for ether details via mail after which which they immediately went to a cover up mode and blocked all transactions and asked us to open a support ticket and we did so but even after a few months of calling multiple times they never did anything abt it and the reps only kept asking me to withdraw the ethers where the quantity and worth had gone down and my cofounder (also my wife) account was blocked and only one page was provided so the remaining ethers would be moved out of the coinbase account with no accesss to any of other coinbase features and luckily sensing friaud from coinbase I immediately took screenshots to prove it and submitted to securities board.
After letting the securities board know we provided them all details and decided to move on as by now we had conducted just a couple of transactions. We moved the ether back to our wallets and that’s it.
NOW AFTER A YEAR I GOT A 1099 form in the MAIL FOR MY WIFE - (COFOUNDER) FOR $600K in transactions under month February showing 23 transactions with no explanations at all.
I literally collapsed as this is the last thing I expected to happen and I didn’t want to stress my wife as she is currently pregnant and it was a bad year for us due to the crypto crash and the ethers which were once valued $582000 are now valued at less than $45000.We are currently in bankruptcy mode and this has left me shocked.
We are on the verge of bankruptcy with no money and we have our company bank accounts and our bank accounts to prove that there were no cash withdrawals made from coinbase to our company account as we were shut off. Neither can I go online into my wifes account to lodge a complaint as coinbase has provided no facility and has done a complete cover up. There is no option where I can call someone and raise a support ticket online (no option in her account and rep asked you to file all isssues online). I realy don’t know what to do at this point and the 1099 number of $600k does not make any sense as they at present are worth less than $50k,
One thing I have realized in the last year is the governments in a mess and are not ready to do what it takes to bring order here. As you the categorization of these tokens by IRS is as a property by FINRA as a currency by SEC as a securities and by CFTC as commodities. These people have literally destroyed me and my family and we are barely surviving.
Looking for a solution:
Coinbase again is not responding.
I am not sure where to go and what to do. I am really worried as I have read online coinbase has expert lawyers who can kill cases like ours just like that. I really don’t know what to do and this 1099 from coinbase will kill us.
My bankruptcy filing need to begin as I have creditors knocking on my door.
Any guidance and help here would be very much appreciated