IRS Forces Coinbase To Hand Over 13,000 Customers Just In Time For Tax Season
Coinbase has been forced by court order to hand over thousands of its customers’ names and personal information to the U.S. Internal Revenue Service (IRS) in an effort for the agency to collect taxes from its users.
“Received notice from Coinbase today,” Tweeted Andreas Antonopoulos, “that my account is one of the 13,000 that they will have to turn over to the IRS under the court order. Not surprised, I knew I would be in that group. In case you were wondering, I’ve filed and paid taxes for my Bitcoin income, gains/losses.”
Received notice from Coinbase today, that my account is one of the 13,000 that they will have to turn over to the IRS under the court order.
Not surprised, I knew I would be in that group. In case you were wondering, I’ve filed & paid taxes for my bitcoin income, gains/losses.
— Andreas M. Antonopoulos (@aantonop) February 23, 2018
Coinbase users should check their email spam folders; it could be the difference in a potential IRS audit or worse. Last Friday, the San Francisco-based cryptocurrency exchange notified thousands of their customers, some 13,000, in compliance with a court order to provide the IRS with “taxpayer ID, name, birth date, address, and historical transaction records for certain higher-transacting customers during the 2013-2015 period.”
The announcement comes after a fight with the IRS by Coinbase mounted in response to a late 2016 summons from the United States tax arm, “demanding that Coinbase produce a wide range of records relating to approximately 500,000 Coinbase customers. Coinbase fought this summons in court in an effort to protect its customers, and the industry as a whole, from unwarranted intrusions from the government.”
“After a long process, the court issued an order that represents a partial, but still a significant, victory for Coinbase and its customers: the order requires Coinbase to produce only certain limited categories of information from the accounts of approximately 13,000 customers.”
Recently, Coinbase, Visa, and Worldpay were forced to clarify an issue why duplicate transactions appeared on customer accounts; the fault was absolved by Visa and Worldpay stating the error wasn’t Coinbase’s.
The same week that Coinbase had problems with double transactions, the company opened up a new service self-titled Coinbase Commerce which will allow merchants to accept cryptocurrency payments already partnering with large merchant Shopify.
Bitcoin is trading at [FIAT: $10,644.80] according to Coin Market Cap the markets seem to have recovered at the time of this report.