@fjhaypainter wrote:
Thank you for the information. This is the first year that I did trading from a non-US based platform. I am told that for crypto currency proceeds, they (trading) are required to pay the tax first before disbursing funds.
Yes, I’m kind of stuck and not sure if this is a scam.
While they may be required by law to withhold the tax (assuming they even follow US law, which is generous of them to do if they are really an off-shore company), the IRS does not require them to collect the tax separately. That's a rule or policy of the exchange, not the government.
At worst, you lose 122% of your money. At best, they do it properly and send the 22% to the IRS, and it counts toward your taxes. In the middle, they keep the 22% so you get 78% back. I don't think anyone here can offer more specific comment, unless there is a user that has used the exact same exchange recently.
Good luck.
