In 2014 I was a broke ass game developer. I bought a few Ethereum when it ICO’d (for 29 cents each). I held on to it since then, until December 2017. After seeing so much scammy scummy shitcoin peddling, I decided it was time to cash out. So I cashed it out on GDAX (Coinbase) in late December 2017. 1500 coins total for $1.14 million (for $680-800 each). I regret it now of course (it’s $1300+ each?), but I regret it even more considering this: http://www.fool.com/answers/faq/estimated-tax-payments/
If you’ve made sizeable enough gains, you need to pay quarterly tax payments in the U.S.
**I now owe about $400k between the IRS and California. Unfortunately on GDAX, I’ve had a withdrawal limit of $10,000 since I sold my coins** this entire time, despite several attempts to request a higher limit and to contact them (including a CFPB complaint that I made last week). I can’t withdraw my money fast enough to pay my taxes.
I have to make this payment by tomorrow or I’m going to be penalized God knows how much on this amount of money. It’s already too late because bank money transfers are still in the stone age and will probably take longer than a day or two.
I can’t get the money out and I’m going to be unable to pay my taxes on time. As far as I can tell there was no way for me to pay taxes on this. I was expecting to use the cash from the sale to pay for the taxes on the sale but that is impossible if I don’t have access to the cash for the sale.
Coinbase even tells you “We remind all our customers, both US and international, that you have a responsibility to self-report and pay taxes on all taxable gains.” – **It would help a lot if you mention how you might not let us have access to those gains.**
Needless to say I’m extremely stressed out and worried now.