On November 28, a federal judge ordered Coinbase, a company that facilitates transactions in crypto-currencies like Bitcoin, to comply with an IRS summons to identify more than 14,000 user accounts.
The decision is a victory of sorts for Coinbase, because the IRS originally demanded that the exchange turn over data on more than 1 million accounts. Now, the IRS only seeks user information on accounts that conducted Bitcoin transactions worth $20,000 or more.
It’s certainly understandable why the IRS wants this data. After all, only about 800 US taxpayers declared crypto-related gains or losses from 2013 to 2015. The value of Bitcoin rose from $13 to $426 – an increase of more than 1,300% during this period.
It’s safe to say that the Coinbase summons is only the tip of the iceberg in a market with the capital value of Bitcoin now approaching $300 billion.
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The decision is a victory of sorts for Coinbase, because the IRS originally demanded that the exchange turn over data on more than 1 million accounts. Now, the IRS only seeks user information on accounts that conducted Bitcoin transactions worth $20,000 or more.
It’s certainly understandable why the IRS wants this data. After all, only about 800 US taxpayers declared crypto-related gains or losses from 2013 to 2015. The value of Bitcoin rose from $13 to $426 – an increase of more than 1,300% during this period.
It’s safe to say that the Coinbase summons is only the tip of the iceberg in a market with the capital value of Bitcoin now approaching $300 billion.
Read Entire Article »
