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Thread: Reporting forex on 1040
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Old 03-18-2009, 10:35 PM
RobFX RobFX is offline
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GREENTRADER: If a broker does not file a 1099 with the IRS showing gain/loss on a forex trading account, then how does this information ever come to the attention of the IRS ? I had a small loss last year and I'm afraid of claiming the loss on my tax return only to be audited by the IRS because they never got a 1099 from my broker proving the loss. I might rather forgo the minimal tax benefit of claiming it and not have to worry about the possible hassle of an IRS audit.

And for those that had gain, if their broker does not file a 1099 and they do not claim the gain on their tax return how would the IRS ever find out ? I'm thinking there must be some notification of gains and losses going on. The IRS is just too "particular" to leave it up to the trader/taxpayer's conscience to make them report any type of trading income.
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