Coinbase Ordered to Turn Over Identities of Cryptocurrency Traders to the IRS

Coinbase Ordered to Turn Over Identities of Cryptocurrency Traders to the IRS

The exchange lost a legal battle and now Bitcoin’s tax problem is coming to a head.

On Tuesday, a California federal court ordered the popular cryptocurrency exchange and wallet service Coinbase to turn over records on thousands of customers to the Internal Revenue Service.

The requested records include the name, birthdate, address, and account activity for any user who bought, sold, sent, or received more than $20,000 worth of Bitcoin in their accounts between 2013 and 2015.

The order marks the end of a year-long court battle between the IRS and Coinbase that began last November when the IRS sought user records for all Coinbase customers.

In January, Coinbase CEO Brian Armstrong wrote in a Medium post, "asking for detailed transaction information on so many people, simply for using digital currency, is a violation of [customers'] privacy, and is not the best way for us to accomplish our mutual objective.”

US citizens are supposed to pay capital gains tax on cryptocurrency transactions and the IRS labels virtual currencies as property for federal tax purposes. As the court order shows, more than 10,000 people bought or sold more than $20,000 worth of cryptocurrency, but only “800 to 900 taxpayers a year have electronically filed returns with a property description related to bitcoin from 2013 through 2015.”

This “suggests that many Coinbase users may not be reporting their bitcoin gains,” the order reads.

In short, the court order is a reaction by the IRS to possible tax avoidance on cryptocurrency gains. Arguably, though, tax law simply hasn’t caught up with cryptocurrency, and the order effectively places over 14,000 Coinbase users under investigation simply for using a new technology. US legislators introduced a bill in September that would exempt any cryptocurrency transaction under $600 from taxation.

https://motherboard.vice.com/en_us/article/ywnmkk/coinbase-irs-14000-bitcoin-tax

As defined by the IRS in 2014 with their document Notice 2014-21 (linked here), Bitcoin and other cryptocurrencies are considered “property” and not a currency by the US Government. That means that every Bitcoin transaction you make can pretty much be taxed. Depending on how you use it, the way it is taxed also changes. If you use it on the daily, paying for goods & services, you are in for a record keepers nightmare. If you buy and hold your Bitcoin and then take out some profits there is less to keep track of, but you still get taxed. Bitcoin is considered a “convertible virtual currency” by the IRS which in their terms means;

“Virtual currency that has an equivalent value in real currency, or that acts as a substitute for real currency, is referred to as “convertible” virtual currency. Bitcoin is one example of a convertible virtual currency.”

With the IRS defining cryptocurrencies as “property” and not a currency it really makes it a hassle to use cryptocurrency for anything without recording every individual tax implication. Well played US Government… well played.

https://www.cryptostache.com/2017/09/27/us-taxes-bitcoin-tax-hokey-pokey/

neka, neka...

U Zagrebu je moguće platit zubara bitcoinom.

Eva_ wrote:U Zagrebu je moguće platit zubara bitcoinom.

glupost...

fašisti.
ali, nika nan neće moći uzesti pouku devize “bez računa se ne računa”

Roy_Bean wrote:

Eva_ wrote:U Zagrebu je moguće platit zubara bitcoinom.

glupost...

Ne, bit će to toga sve više.

oće, oće...

Ti si sad kivan kaj nisi na vrijeme rudaril.

nisam uopće kivan nego sam realan jer ne vidim da banke puštaju novce iz svoje domene...

Evo danas ruše BTC, ispod 10,5 k $. Uleti!

samo naprijed...

BTC se vrti oko 10 000$, Etherum i Bitcoin Cash , svi su pali za par %, sada je zadnji vlak za uletit. GogoGogo

Si gledal projekcije za iduću godinu?

https://cointelegraph.com/news/ban-bitcoin-says-nobel-prize-winner-while-ignoring-fang-losses

Nobelovac Stizglitz želi banirati Bitcoin(iako je to nemoguće )

saying that the market for Bitcoin is driven mostly by its potential to circumvent government agencies.

His rant continued, stating that the Bitcoin market will ‘go up, and then come down,’ leaving many investors injured, and therefore it should be banned, adding that it doesn’t serve any ‘socially useful function.’

Eva_ wrote:Si gledal projekcije za iduću godinu?

jesam .. idu ovako

od 0$ do 100 000$ za BTC (i druge )



ja sam sredinom ljeta, uložio dio love, kao dio "dugoročne štednje", sada mi portfolio, za sada vrijedi 2.5x više.. hehe.

pomirio sam se ako propadne, propadne, ali mislim da neće

Pinochet wrote:

Eva_ wrote:Si gledal projekcije za iduću godinu?

jesam .. idu ovako

od 0$ do 100 000$ za BTC (i druge )

Danas pada, sad je na 9,88 k $, no preko vikenda obično naraste. Tak je prošli vikend otišao gore za 1,5 K

Neće.

zanimljivo ovo za coinbase, ovi iz coinbase-a tvrde da su ostvarili djelomičnu pobjedu, jer većina zahtjeva federalnih vlasti je odbijena

https://cointelegraph.com/news/coinbase-wins-partial-victory-over-irs-government-data-request-reduced

According to Coinbase, the government initially sought records on over 500,000 users in their efforts to catch tax cheats. After months of legal wrangling, Coinbase announced that the IRS has reduced their records request to only 14,000 users, a 97% reduction.

Eva_ wrote:

Pinochet wrote:

Eva_ wrote:Si gledal projekcije za iduću godinu?

jesam .. idu ovako

od 0$ do 100 000$ za BTC (i druge )

Danas pada, sad je na 9,88 k $, no preko vikenda obično naraste. Tak je prošli vikend otišao gore za 1,5 K

ne isplati se gledati te dnevne fluktuacije oko par posto gore dolje.. gledaš dugoročni trend. to je normalno za BTC. naraste za 30% u roku par dana.. dosegne novi "rekord", onda padne za 10%, tu se stabilizira neko vrijeme, pa ponovo skoči naprijed.

da bi jedan BTC vrijedio par milijuna $, kako neki dugoročno predviđaju, mora postati mainstream