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.
>Coinbase ordered to report 14,355 users to the IRS A California federal court has ordered Coinbase to turn over identifying records for all users who have bought, sold, sent, or received more than $20,000 through their accounts in a single year between 2013 and 2015. Coinbase estimates that 14,355 users meet the government’s requirements.
The order is significantly narrower than the IRS’s initial request, which asked for records on every single Coinbase user over the same period. That request would also have required all communications between Coinbase and the user, a measure the judge ultimately found unnecessarily comprehensive.
Gabriel Clark
dexes will kill governance
John Foster
>don't cash out >government spy on you and plan your jail sentence
wew
Isaac Rivera
The government made no claim of suspicion against individual users, but instead argued that the order was justified based on the discrepancy between Coinbase users and US citizens reporting Bitcoin gains to the IRS. Coinbase boasts nearly 6 million customers, but according to a government filing, fewer than 1,000 US citizens have reported cryptocurrency holdings on their taxes.
Colton Wilson
muh privacy
Leo Foster
Why would you report crypto currency holdings in your taxes?
Grayson Diaz
Rejecting some of those requests, today the court narrowed the scope of documents that the IRS can request from Coinbase to taxpayer ID number, name, date of birth, address, transaction logs and account statements, deeming the rest of the documents “not necessary.” Again, these personal data requests will only apply to accounts that have bought, sold, sent or received more than $20,000 in any of those types of transactions between 2013 and 2015.
Ethan Nguyen
pay your fucking taxes. like seriously. you can do anything in America, anything in this country, the most vile, horrific shit, but if you do not render unto Caesar his fucking cut your life will be over faster than you can fucking believe.
Oliver Taylor
The investigation began after the IRS searched its electronic filings and discovered that only 802 people had declared bitcoin-related losses or gains in 2015.
During the three years covered by the IRS demand, the price of bitcoin soared from $13 to over $1,100. The currency this week broke the $11,000 for the first time.
Christopher Mitchell
LET THEM REGULATE THIS SHIT COIN YOU IDIOTS!
We got so many others now. Much better.
Let the normies get stuck in BTC, while we bask in the glory of unregulated cryptos.
Easton Lee
Get the Fuck away from my fairy money you dirty kikes
Dominic Walker
The rush for the exit begins.
Brody Phillips
Unless you are super rich - you can just avoid taxes with various schemes then.
Isaac Walker
you don't need to pay taxes if you don't cash out you fucking brainlet
Alexander Collins
well yeah, when you become turbo rich you got a guy who knows every loophole and owns his own private swiss bank and you yourself own an island where all your money is kept and all that's there is another bank
Lucas Gomez
OMG
Owen Reed
Crypto-to-crypto is a taxable event
Lucas Reed
no it's not, check the statistics
Owen Rodriguez
>y-y-you can cash out from crypto
Top kek. Cryptocucks on suicide watch
Nathan Nelson
The IRS wants you to declare your coins so they can estimate how many taxes you need to pay.
Jackson Cook
some anons up for huge debts in back taxes and/or litigation very soon
Asher Thompson
It is jackass
Jace Peterson
Yes it is, hope you have lube mate
Austin Hill
You have to report currency appreciation on your taxes? Does that mean I can deduct currency depreciation? All my cash loses 2% to inflation every year.
Ethan Ramirez
They have to come up with a way to make it easy for all these finance noobs to report their gains. There's so many people with significant gains out there who won't pay their taxes simply because they have no idea what they're doing and they don't think the IRS will pay them a visit.
Someone should start an ICO for this. IRScoin
Christian Cook
>mfw not living in a shithole that cucks you on a daily basis
Easton Walker
Bitcoin isn’t currency at-tard. It’s a commodity. Think pork bellies or a fleet of trucks.
Brandon Scott
Repeat after me: "My account was hacked and my coins were stolen"
What is there to report?
Now tumble the coins and send them to another wallet.
Joseph Thomas
>Only 800 people reported holdings
AHHAHAHAHA
Sebastian Collins
capital loss
Easton Howard
>who had more than $20,000 in annual transactions on its platform between 2013 and 2015 this is ofc burger related
>you got jewed
again
David Parker
enjoy your audit
Sebastian Garcia
>using Normiebase
This is the future you chose.
Aaron Ortiz
this lmao, americucks I swear even the tax lovers in fucking Denmark don't pay taxes on crypto
Christopher Richardson
>muh 6 million
It vey these anti Semitic bastoids
Jonathan Howard
It *oy
Gavin Foster
The 2016 and 2017 numbers are going to be epic. Made mad ETH gains this year user? Decided to move into ALTs like a big dick trader? You just gave 40% to Uncle Sam and he will have his due.
Juan Hernandez
please explain. is it that if you make enough gains, you have to pay 40% cause that's the highest bracket?
I thought highest cap gains tax was 20%
Juan Butler
>Sorry mr. taxman, I bought Monero and accidentally send it to a wrong address. Such a shame, I really wanted to pay 40% of net worth in taxes.
Kevin Torres
If you have over $1MM in gains in less than a year, you'll pay over 40% capital gains tax.
use this tool to calculate. it even does your local state tax rate which could be major depending on which state you live in.
Brandon Lee
bump.
Angel Martin
It's property. It has """value""". >"I want muh bitcoin to be a viable currency/investment" >"REEEE government is treating muh bitcoins like a viable currency/investment" Why are coiners such retards?
Eli Johnson
>tfw the IRS realise they cant actually cash out
Jace Peterson
b.
Connor Rogers
topkek
Jeremiah Walker
if you didnt see this coming you might be actually retarded coinbase been in talks with the IRS since at least the summer sign ups require photos of your drivers license since then
just pay your taxes. if you have a personal income you owe some to the state, thats how the system works.
Any gains over $500 in under 6 months from one source is taxable
Jacob Gomez
So im a retard but why can't the IRS use this for bitcoin transactions and just start raping people
Dominic Flores
Thank God I haven't made shit on alt coins bought with bitcoin.
I bought btc and eth with cash and i'll only took out some eth which i'll have to pay on.
The alt coins i bought with BTC all crashed and burned and I lost.
Lucas Foster
lmao how new are you
Logan Collins
>Gets shot
Aiden Murphy
The whole point of bitcoin is to fuck the state. If course we won't report a hard drive with bitcoins as property to the nigger farm government, and they will never know.
Jaxson Reed
Muh tax the rich
Elijah Gomez
A bitches fine virgin ass has “value”. What’s your point? Women treated as property and taxes the hotter she is? Fuck off
