Robinhood to pay $70M for 'systemic supervisory failures'

Re:Robinhood to pay $70M for 'systemic supervisory failures' by AznHisoka on Wednesday June 30, 2021 @02:13PM (#27691761)

Beware that Robinhood also miscalculates wash sales, which they've admitted to me. I typically don't care about customer support, as I don't do a lot of trades, but messing up tax forms is a huge no-no for me.

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Re:Robinhood to pay $70M for 'systemic supervisory failures' by dataflow on Wednesday June 30, 2021 @06:01PM (#27693908)

Could you elaborate on what scenarios it would get messed up in? I expect it would happen if you're working across multiple brokerages, but is there any other scenario? It'd be helpful for us to know and watch out for it.

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Re:Robinhood to pay $70M for 'systemic supervisory failures' by AznHisoka on Wednesday June 30, 2021 @09:29PM (#27695436)

The most basic scenario. I bought X shares of a stock for the first time ever, and sold it < 30 days later for a loss. That loss should not be a disallowed wash sale, but Robinhood claims it is. facepalm

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Re:Robinhood to pay $70M for 'systemic supervisory failures' by thebean11 on Wednesday June 30, 2021 @02:15PM (#27691786)

Hmm, mess them up in whose favor? Robinhood messing it up seems like plenty of plausible deniability to not pay a penalty if you get audited..

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Re:Robinhood to pay $70M for 'systemic supervisory failures' by AznHisoka on Wednesday June 30, 2021 @02:28PM (#27691935)

Mess them up in the IRS' favor, and it was clearly a mistake, and something they've had to fix for me.

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