Q: I am trading bitcoin for fiat and the exchange wants me to pay them the capital gains taxes for the irs. Is this legit?
I thought the proceeds came to me and I reported them on my taxes. Why would I pay them the taxes?
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A: It's typically the individual's responsibility to report and pay their own capital gains taxes on cryptocurrency transactions to the IRS. If the exchange is asking you to pay the taxes directly to them, it raises concerns. You should consult with a tax professional to ensure proper compliance with tax regulations and avoid potential scams.
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