When Bitcoin was like, a dollar or 10 dollars a coin none of this was a problem, but at some point over the last 10 years the value shot up (and up and down and up etc), the IRS started paying attention, and selling off a Bitcoin or two has to be reported on one’s taxes.
Coinbase (a sort of crypto holding company ) only had one type of account and it was tied to a particular person’s name (and legal identity) so as Noisebridge began to get donations in Bitcoin, that account was tied to the identity of a past officer of the organization (the treasurer).
Fast forward to now, when Noisebridge would really like to cash that stuff out and be able to use the money to pay rent!
Coinbase now has “organization” accounts, and there seemed to have been a period where they understood that non profits and companies needed to convert accounts from one type to another.
We haven’t had much luck in the past year of trying to convert the account. It’s a big problem!
If our (past from many years ago) treasurer sells the Bitcoin that were donated to Noisebridge, it will look like they made a giant personal profit and they will have to pay taxes on it and it will likely make their own tax rate jump up. So that is a sucky option.
Would it be bonkers to just estimate what that amount of extra taxes would be, and leave that amount with the past treasurer? And then they basically “donate” the balance of it to Noisebridge. (Which might help offset some of the extra taxes in theory).
Like I said, none of this felt like a problem when it was maybe a couple of hundred dollars but now it is a couple of hundred thousand!!
If anyone out there has contacts at Coinbase who might help us properly convert the account I would love an introduction.