Should I amend right away after discovering unreported crypto transactions?
I submitted my tax return like 3-4 weeks ago and just yesterday received a 1099 from Cash App showing my bitcoin trades from last year. The total was around $1100 and honestly I had completely forgotten about those transactions. I didn't include any of this on my original return since I didn't have the form when I filed. My question is - should I file an amended return immediately or should I wait until after I receive my refund? I'm expecting about $2200 back and I'm worried that if I amend now it might delay everything. What's the best approach here? Should I just wait or amend right away?
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Lucy Lam
Filing an amended return for unreported crypto transactions is definitely the right move, but timing matters. Generally, it's better to wait until your original refund is processed and received before filing an amendment. The IRS processes original returns and amended returns through different systems, and filing an amendment while your original return is still being processed can cause confusion and delays. If you're expecting a $2200 refund from your original return, waiting until that's received before submitting your amendment is typically the safest approach. Since the unreported crypto is relatively small ($1100), the impact on your taxes might be minimal depending on whether you had gains or losses.
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Aidan Hudson
•If I'm in a similar situation but my crypto was a loss of about $900, do I even need to amend? Does it matter if it's a gain or loss for reporting requirements?
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Lucy Lam
•You should still report crypto losses as they can offset other capital gains or up to $3,000 of ordinary income. The IRS requires reporting all crypto transactions regardless of whether they resulted in gains or losses. The benefit of reporting losses is that they can actually reduce your tax liability, potentially increasing your refund. So yes, you should amend even for losses - it's not just about compliance but possibly getting money back.
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Zoe Wang
After finding myself in a virtually identical situation last year, I discovered taxr.ai https://taxr.ai and it was a game-changer. I had forgotten about some Robinhood crypto trades and wasn't sure how to handle the amendment. Their system analyzed my 1099 forms and actually found some losses I could claim that partially offset the gains. The whole process was so much less stressful than I expected.
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Connor Richards
•Does it work if you've already filed? I have a bunch of crypto transactions across different platforms (Coinbase, Binance, etc.) and I'm worried I missed reporting some of them. I already filed about a month ago.
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Grace Durand
•How does it compare to other tax software for crypto? I tried using TurboTax last year and it was a nightmare trying to import all my transactions.
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Zoe Wang
•Yes, it absolutely works if you've already filed! That was exactly my situation. You just upload your already-filed return along with the new documents, and it shows you the difference and helps with the amendment forms. Compared to other tax software, the biggest difference I found was that it's specifically designed for document analysis rather than just form-filling. It caught several transactions that TurboTax missed when I tried importing directly. The interface is much more focused on reviewing what you have versus what you need rather than just walking through generic questions.
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Connor Richards
Just wanted to follow up - I ended up trying taxr.ai after seeing the recommendation here and it was genuinely helpful. I had crypto transactions across 3 different platforms that I completely forgot about when I filed my original return. The system showed me exactly what needed to be amended and even identified some losses that offset some of my gains. Definitely made the amendment process way less intimidating than I expected.
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Steven Adams
If you're trying to contact the IRS about this amendment situation, good luck. I spent FOUR HOURS on hold last week trying to get clarification about my amendment timing. Eventually I found Claimyr https://claimyr.com and they somehow got me connected to an actual IRS agent in under 20 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c - it saved me from completely losing my mind with the hold music.
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Alice Fleming
•Wait, how does this actually work? They just call for you and then transfer you? Seems weird the IRS would allow that.
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Hassan Khoury
•Yeah right. No way this actually works. I've been calling the IRS for WEEKS. If this actually worked, everybody would use it.
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Steven Adams
•It's not that they call for you exactly. The service uses technology to navigate the IRS phone system and wait in the queue, then it calls you once it reaches a human. It's all automated and completely legitimate. The IRS doesn't have any problem with it because you're still the one talking directly to the IRS agent. The service just handles the miserable waiting part. Think of it like having someone physically wait in line for you, then texting you when it's your turn.
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Hassan Khoury
I need to publicly eat my words. After posting my skeptical comment, I was desperate enough to try Claimyr. After weeks of failed attempts to reach the IRS myself, I got connected in about 15 minutes. The agent confirmed I should definitely wait until my refund arrives before filing the amendment (exactly like the first commenter said). Apparently filing an amendment while the original return is still processing can create a nightmare scenario where both get stuck in limbo.
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Victoria Stark
A little late to this thread but the advice to wait until you get your refund is solid. I made the mistake of filing an amendment too quickly last year (also for crypto I forgot about), and it caused my original refund to get held up for MONTHS. The systems don't communicate well between original and amended returns.
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Benjamin Kim
•Do you think there's any risk of penalties if OP waits until after getting the refund? Like could the IRS say they should have amended immediately upon discovering the mistake?
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Victoria Stark
•Generally, the IRS appreciates that you're trying to correct the mistake, whether you do it immediately or after your refund. The key is that you initiate the amendment voluntarily before they catch it themselves. For a relatively small amount like $1100 in crypto transactions, the difference in any potential penalties between amending now versus a few weeks from now after getting your refund would be extremely minimal - we're talking maybe a few dollars at most in interest. The peace of mind of having your original refund safely in hand before complicating things with an amendment is absolutely worth it.
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Samantha Howard
Has anyone used the 1040-X form for something like this? Is it complicated to fill out for just adding crypto transactions? I'm worried I'll mess it up if I try to do it myself.
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Megan D'Acosta
•I amended for crypto last year using 1040-X. It's not super complicated but you need to include a revised Schedule D and Form 8949 to report the crypto. The annoying part is you have to mail it in - no e-filing for amendments yet in my experience.
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Malik Thomas
I was in almost the exact same situation last year - filed my return, then got a late 1099-B from a crypto exchange about 6 weeks later. The advice about waiting for your original refund is spot on. I made the mistake of rushing to amend immediately and it created a mess where both my original return and amendment got stuck in processing limbo for almost 4 months. The IRS systems really don't handle simultaneous processing well. Once I finally got everything sorted out (with help from a tax professional), the agent told me that waiting until the original refund clears is always the safer approach for amendments. The small amount of additional interest or penalties you might accrue by waiting a few more weeks is nothing compared to the headache of having both returns tied up in their system. For $1100 in crypto, you're looking at a relatively minor impact on your taxes anyway, especially if some of those transactions were losses that can offset gains. Definitely amend, but be patient and wait for that $2200 refund first.
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Roger Romero
•This is exactly the kind of real-world experience that's so helpful to hear about! The 4-month limbo situation sounds like a nightmare. I'm curious - when you eventually got it sorted out with the tax professional, did they have any specific tips for avoiding similar issues in the future? Like are there certain times of year that are better for filing amendments, or ways to track when your original return has fully cleared the system before submitting the 1040-X?
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