IRS Access to Records of CoinBase Users

One of the largest bitcoin exchanges in the world is CoinBase. The company is based in California and the platform handles billions of dollars in Bitcoin transactions.

The IRS recently won a ruling that allows them to gain the identities of CoinBase users from 2013 to 2015. From there, the IRS will be investigating how some users may have abused the CoinBase service in order to conceal transactions from their books.

Although laws in place that make it extremely difficult for you to do business with offshore gambling websites in the USA, you are still obligated to pay taxes on any income that is derived from online gambling websites.

Some online gamblers will move money through Coinbase as a method exchanging Bitcoins for USD. If you have used Coinbase, you should be alerted that the IRS could have information about your transactions.

IRS Access to Records of CoinBase Users

The story of Coinbase having to turn over its records has even hit mainstream media outlets. Forbes recently wrote that:

“The IRS’s efforts have been wildly successful, and offshore account collections top $10 billion now. The IRS is likely eyeing digital currencies as a similar treasure trove of unpaid taxes.”

Forbes goes on to say that Bitcoin tax-dodgers could be brought to justice. If you have mistakenly left income off of your tax returns, experts say that you should file an amendment in order to properly report any earnings through Bitcoin.

January 9, 2017 by : Posted in 2017 No Comments

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