Cryptocurrency and Taxes
There is lots of talk about cryptocurrency.
Some saying we are far from making it “mainstream.”
While others say (rightly so), it would only take someone like Jeff Bezos to say “yes, we accept it” and things would be far different.
That’s all it takes to change the game.
By some accounts there are over 1,300 different cryptocurrencies; together pulling (in 2017) some $300bn out of circulation.
Which brings me to the crux of this post: cryptocurrency transactions and taxes.
Coinbase Inc. (a virtual currency exchange) has attracted the interest of Internal Revenue Service. They (IRS) want access to data on a two-year period.
For that period of two years IRS wants a wide range of information on Coinbase users: such as invoices, record of payments, account statements, any type of correspondence between Coinbase and its account holders.
The tax court has partially agreed with IRS’ requests.
And Coinbase was instructed to provide records (name, DOB, address, account statement and transactions) of Coinbase account holders who meet a certain criteria.
($20,000 or more in any one transaction.)
For the time period in question, Coinbase had about 6 million customers.
Less then a 1000 of those customers have filed income tax returns (reflecting cryptocurrency transactions). Less then a 1000.
Out of 6 million.
You can understand the “intense” interest IRS has in finding out more about Coinbase and its users.
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