My accoutant refuses to do my tax

Beginner Questions
1

Firstly I have read about 1256 contracts and IRC 988 contracts.

I was planning for the accountant to do 988 since I have net loss. I bought over my yearly statement from Oanda. Accountant wants 1099b. I explain to accountant OANDA doesn’t provide 1099b, only statement

Accountant tells me that statement is not good enough to claim anything with IRS. Accountant ask what Oanda send IRS to show I have net loss or gain? I answer nothing

accountant says then there is nothing to claim because IRS does not have any info from brokerage firm to match my claim against.

It sounds pretty screwy to me. but accountant does bring up a good point in how does the IRS even know about my net loss or gains, if OANDA doesn’t send them anything? is this all on the honor system?

2

Oanda has your tax ID number. The IRS has a hotline to brokerage agencies.

It’s up to you to supply the numbers. Believe me, if you get audited, you’ll want to have your numbers match the ones the IRS will dig up from Oanda.

3

I agree with Master Tang here. I think there are quite a few traders who think that they can simply not report their trading revenues as the tax authority (IRS in the US and by whatever other name their are known in other countries) does not have an automated system in place. When you do get audited and you do not have the proper paperwork you can find yourself in some really deep you know what. Don’t try to cheat the system, report your earnings and be on the safe side.