Coinbase ordered to give the IRS data on users trading more than $20,000

TechCrunch ^

[ameribbean expat]

On Wednesday, a federal judge in San Francisco ruled that Coinbase must supply the IRS with identifying information on users who had more than $20,000 in annual transactions on its platform between 2013 and 2015. After noticing that the number of tax returns claiming gains from virtual currency didn’t line up with the emerging popularity of digital currencies like bitcoin as an investment vehicle, the IRS asked Coinbase to hand over a broad swath of information on its users. Coinbase pushed back, and now the court has landed on a compromise that the company is calling a “partial victory.”

“Coinbase itself admits that the Narrowed Summons requests information regarding 8.9 million Coinbase transactions and 14,355 Coinbase account holders. That only 800 to 900 taxpayers reported gains related to bitcoin in each of the relevant years and that more than 14,000 Coinbase users have either bought, sold, sent or received at least $20,000 worth of bitcoin in a given year suggests that many Coinbase users may not be reporting their bitcoin gains,” the court documents read.

[ameribbean expat]

Buckle up.

https://twitter.com/coinbase/status/935918546546130944

[Bodleian_Girl]

Ping. Bitcoin.

[GregoTX]

Binance

[moovova]

IRS going fishing.

[bkopto]

After noticing that the number of tax returns claiming gains from virtual currency didn’t line up with the emerging popularity of digital currencies like bitcoin....

The anticipated capital gains aren't there because most bitcoiners buy and hold. The vast majority aren't traders or sellers. Since bitcoin is "digital gold" it is held, not transacted.

A recent survey indicated that most of the holders won't sell until the price per coin is north of $200,000!

[Nailbiter]

ping

[gaijin]

[Reno89519]

Money launderers, drug dealers, and tax evaders will finally face accountability for their actions. About time. Bet these schemes will lose popularity once people are outed.

[E. Pluribus Unum]

If you keep your Bitcoin in your own wallet they can’t touch you.

[Deaf Smith]

*May not be reporting their bitcoin gains

Is there a gain of it is not converted to a recognised currency?

[E. Pluribus Unum]

Money launderers, drug dealers, and tax evaders will finally face accountability for their actions. About time. Bet these schemes will lose popularity once people are outed.

People should not be allowed to deal in currencies the government can't manipulate or confiscate.

[vooch]

when the gov’t is back down to 7% of GDP ( instead of 42% ) - we can talk about the evils of tax evasion and money laundering.

Until then - More power to them. every penny protected from the evil hands of politicians is a good deed

[Redwood71]

Give it to who? The IRS is so screwed up it can’t even audit itself. Giving them more information is like pouring gas on a fire.

rwood

[Reno89519]

Seriously? So you promote tax evasion and money laundering? You excuse it for government size, but what is that money be used for? Terrorism, drug running, human smuggling, child sex trade, etc. What about doing it for Black Lives Matter, Defending Confederate statues, or whatever? If it supports your political view okay, otherwise not?

[IncPen]

Seriously? So you promote tax evasion and money laundering? You excuse it for government size, but what is that money be used for? Terrorism, drug running, human smuggling, child sex trade, etc. What about doing it for Black Lives Matter, Defending Confederate statues, or whatever? If it supports your political view okay, otherwise not?

I'll ignore your Henny Penny Sky-is-Falling appeal to calamity and say this:

It's private property. The fact that someone could do evil with it is not reason to confiscate it.

There's a picture up this thread of Lois Lerner. That's reason enough for me to tell the politicians to pound sand.

[Cletus.D.Yokel]

In other court actions, the CEO and Board of the bitcoin empire are being required to use only the metric system when measuring.

[Svartalfiar]

Is there a gain of it is not converted to a recognised currency?

Sure. Even if it isn't converted, it still has a set rate that gives you its value. Bitcoin and other e-money all has a very easy converter to dollars. there's no extrapolation or complicated formulas needed, it's just like converting to a different country's currency.

And, since the value of bitcoin has skyrocketed (link/pic below - from June'17 to now, it's gone from $2500 to $11k), that's just like any other capital gains - buying stocks that fluctuate in value. And you don't get taxed on those gains, but you do get taxed on the net profit when you sell them! How is buying/selling a Bitcoin any different?

Heroes Pay Taxes: What You Need to Know About the IRS & Online Games

XE's currency chart shows how much it's gone up lately. (link, not picture below)

[vooch]

big gov’t is evil