[2016-11-18]The IRS is Targeting Bitcoin Transaction Records of Coinbase Users

[WishICanTurnBackTime]

The IRS is Targeting Bitcoin Transaction Records of Coinbase Users

Transaction records of Coinbase users, specifically bitcoiners, have been targeted by the Internal Revenue Service (IRS), according to a federal case filed in the U.S. District Court in the California Northern District Court.
First revealed by ZeroHedge on a late Thursday night November 17, the civil petition was filed in the federal court in California the same day.

With a “John Doe” summons, a summons issued by the IRS to a third party to provide information on unnamed, unknown taxpayer(s), the filing reads:
"Based upon a review of the Petition and supporting documents, the Court has determined that the “John Doe” Summons to Coinbase, Inc., relates to the investigation of an ascertainable group or class of persons, that there is reasonable basis for believing that such group or class of persons has failed or may have failed to comply with any provision of internal revenue laws…"

https://www.cryptocoinsnews.com/irs-targeting-bitcoin-transaction-records-coinbase-users/

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[Chef Ramsay]

During the demanded return years ending in 2013, 14 and 15, mostly Coinbase wallet holders were losing money that they already were taxed on prior to buying bitcoin. Coinbase didn't really start becoming ubiquitous in our community until 2014 anyway.

[TraderTimm]

This is ludicrous, and should be struck down.

They are "catfishing", plain and simple -- by issuing a broad demand for user information, it tells us that they don't have singular accounts or people that they are looking for. That is simply over-reach, and I hope the scheduled court hearing finds it as such.

If they are so concerned, they can use the data that they already have, in the form of filed tax forms to determine the necessity of individual audits.

Current law covers taxation of income from trading, there doesn't need to be any special cases just because Bitcoin now exists.

[European Central Bank]

uh, i kind of assumed coinbase were already handing info like this over anyway. and what is the irs hoping to achieve? do they have any type of blockchain analysis capacity?

[Coin-Keeper]

This is why I like quasi-anonymous cash purchase coins from localbitcoins members.  No IP tracks to me either.

[1Referee]

It doesn't come by a surprise. I am always prepared for this in the way that I mix every single cashout that goes towards my cold wallets. If you ask the IRS directly what their main purpose is, they surely come up with that they are trying to hunt down people financing terrorism, money laundry, avoiding tax, etc. They smell money. Bitcoin trading is a huge industry where they probably see the potential of tens of millions, perhaps hundreds of millions of extra income.... I am even thinking to fully trade on BTC-E because they don't force you to verify yourself in order to make use of their trading platform. Currently I use both Bitstamp and BTC-E.

[IconFirm]

The IRS, FBI, CIA, NSA, FIMA, DIA, NRO, OICI, HS, I&A, INR, DEA, TFI....the list goes on & on. The ones that we know of that is.

Must be fun living in "The Land of the Free" eh?

[ThirstyMoon]

Make America Great Again. Rest in peace, Coinbase.

Better leave Coinbase, also because their database got SQLd.

[Dahhi]

I do not believe the IRS has any way of proving that Coinbase users are evading fiat taxes and according to US laws in most states, bitcoin is not money.
I see no reason why IRS wants to tax something that is not money (at least to them).