Crypto exchange Coinbase will hand over client data to IRS, following a court order from November 2017.The website of the service provider also states that clients can address their concerns on Coinbase’s Taxes FAQ.
26 February, AtoZForex – On the 23rd of February, the US-based cryptocurrency exchange and wallet service Coinbase has sent an official message to its customers. Around 13,000 of Coinbase’s clients have received a notice stating that the service provider will need to hand over their information to the US Internal Revenue Service (IRS).
Crypto exchange Coinbase will hand over client data to IRS
The IRS has asked Coinbase to provide detailed information on each of its 500,000 users back in July 2017. The IRS initially requested nine sets of user data. These included “complete user profiles, know-your-customer due diligence, documents regarding third-party access, transaction logs, records of payments processed, correspondence between Coinbase and Coinbase users, account or invoice statements and records of payments.”
The authority has called for this action in a bid to expose those cheating on their taxes. Yet, the court order from November 2017 has decreased the number of customers to 14,000. The court has ruled out to only require information about the “high-transacting” users.
Cryptocurrency taxes reporting
In fact, the exchange needed only to supply the info about the users with more than $20,000 annual transactions on its platform in the period between 2013 and 2015. Now, the Coinbase report this number to be at 13,000 users.
The official document from the court reads:
“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 letter from Coinbase asks clients “to seek legal advice from an attorney promptly” in case they have any inquiries. The website of the service provider also states that clients can address their concerns on Coinbase’s Taxes FAQ.
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