Monday, February 26th 2018
"Lawyering Up" - Coinbase to Send Data on 13,000 Users to the IRS
Coinbase, one of the world's largest cryptoexchanges - which is also one of those with the most solid footing when it comes to these kind of exchange - has announced via email that it will be disclosing around 13,000 users' data to the IRS. No doubt this is a move by the company to improve its footing even more with state institutions; however, this will certainly reduce consumers' trust in the exchange - at least, for those customers who weren't considering having to pay taxes on their crypto earnings.
What prompted this move by Coinbase? Well, back in November 2016, the IRS, through a San Francisco-based judge, started court proceedings which would see all of Coinbase users' data to be delivered to the services. Coinbase fought over these court proceedings, but ultimately caved in after the IRS's proposal changed from "all users" to a system that's likely based on trading volume. This is why "only" 13,000 users will see their personal data (taxpayer ID, name, birth date, address, and historical transaction records for certain higher-transacting customers during the 2013-2015 period) being delivered to the IRS as part of a major tax evasion investigation (which should surprise no one, really).
The affected individuals have been notified via email; Coinbase's statement as to this turn of events? They themselves are "unable to provide legal or tax advice," and thus, tell users that "If you have concerns about this, we encourage you to seek legal advice from an attorney promptly. Coinbase expects to produce the information covered by the court's order within 21 days."
Source:
ArsTechnica
What prompted this move by Coinbase? Well, back in November 2016, the IRS, through a San Francisco-based judge, started court proceedings which would see all of Coinbase users' data to be delivered to the services. Coinbase fought over these court proceedings, but ultimately caved in after the IRS's proposal changed from "all users" to a system that's likely based on trading volume. This is why "only" 13,000 users will see their personal data (taxpayer ID, name, birth date, address, and historical transaction records for certain higher-transacting customers during the 2013-2015 period) being delivered to the IRS as part of a major tax evasion investigation (which should surprise no one, really).
63 Comments on "Lawyering Up" - Coinbase to Send Data on 13,000 Users to the IRS
An important part of this ruling is the "high volume" part. Coinbase will only disclose people who make like 10k+ per calander year IIRC. It seems actually underwhelming, to be frank.
The funny thing is, for the average joe, they have no choice but to pay their taxes, it's usually the high earners, corporations and those who earn obscene amounts of money who try and find anyway possible they can to avoid paying (as much) tax as they should... :kookoo:
Those 13000 are likely to be the most active traders and the top 10% of that list will be talking some big $$$
Monero is the only future, ANON, you work for x hours or do a job for x person, he sends Monero to your wallet from his Monero wallet, and x guy down the street sells games for x Monero as well. Fiat will always be king. but don't tell me you don't understand what cryptocurrency was supposed to be... sad... I was mining in 2012 but formatted my HDD thinking nothing would come of it and that big banks were too powerful... so sad the way people look at it all now. :/
But I still dont know what you're talking about, first you said Monero, now you are talking about Bitcoin. You said you never had or owned bitcoin so why are you talking about Monero.
oh well, such is life. I know some guy I was mining with on OCN back in the day and he bought a red corvette when it initially went to 1000 for the first time several years ago. he sold out then bought himself a corvette, doubt he paid taxes on it, i don't think maybe people thought of that back then. so its guys like that whom I am referencing will be in for a surprise bill from the IRS.
I don't think crypto will last honestly. the governments of the world just are starting to eat it alive now. combined with if Bitcoin dies, then so does currencies like Monero, because fiat is and always will be king. I think the only thing keeping Bitcoin alive is well governments can't charge you tax on it if you never take it out of your cold wallet on a physical hard drive... but you can still use that bitcoin to say travel internationally and apy for hostels, etc bitcoin wallet to bitcoin wallet, and no one will ever be able to tax that stuff as long as you stay away from exchanges etc.
eventually governments will realize this and just put the banhammer on all fiat exchanges. once that happens its all over. now that i got a 1080 ti gpu on preorder im just going to enjoy my gaming. hopefully gtx 2080 comes out in summer and I snag one from EVGA and can use the step up program ^^
"I have no Bitcoin and never had any.".
Today at 1:40 PM
#7
yotano211 said:
You must be one of those special people, or just plain stupid. No matter what you think it is still income and you need to report that income according to your countries' laws.
I know it is income... I was referring the people who will be surprised when they get letters in the mail from the IRS... I have no Bitcoin and never had any. Thanks for inferring and using crude language though, you are a great part of this community!
Which is why I said "I wish I could go back and mine..."
welp I am done with this thread, later nubsTrump has done it several times, re-selling houses 40 million over their value to Russians, etc. IRS doesn't seem to mind one bit. :) and the IRS is moving so slow on Trump's audit, he will be retired and in a nursing home by the time they get it sorted. so no risk of penalty once you are as big as him see.
IRS is a slow moving beast for the real criminals in this country, but when the little guy messes up or sees a new chance like with Bitcoin, boom they come hard, fast. and garnish them wages within weeks. blows my mind, lol. but meh I could care less. I am in Ireland and back to Finland this summer as well. laws here are much nicer, I like how the UK recently said no we are not going to let USA extradite this hacker guy from last week, because USA prisons are too cruel, lol. Europe is where I am staying, besides visiting my family once in awhile in the states. long live the Nordic countries !
That, and Satoshi himself wasn't really a crypto-anarchist type from what I have been able to gather. Possibly why he hides.
Well, to be honest, I don't know for how long after the tax evasion occurs the USA govt. can lay charges against a taxpayer for such crime but, in Argentina (which is where I live) the tax office can ask you to pay taxes up to five fiscal years later if you had already been registered as a taxpayer (only if you have a certain amount of wealth, a relatively high yearly income or if you do business that makes money, regardless of whether it's for profit or not) or up to ten years if you have not been registered as a taxpayer. I suppose the US IRS works with similar time frames if not longer.
If terrorism is involved or could be involved, well, they won't stop. Ever.
Edit: and not just limited to BC pretty much a lot of cryptocurrencies are attractive because of their anonymous nature.