[2017-03-22] Only 807 People Have Declared Bitcoin for Tax Purposes ...

[Gembul]

News Bitcoin - Only 807 People Have Declared Bitcoin for Tax Purposes According to IRS

Only 807 people have declared Bitcoin for tax purposes, according to court documents filed by the IRS in San Francisco. If true, it is likely only a tiny percentage of virtual currency users have reported profits and losses in their annual income forms.

Filed in San Francisco federal court on Thursday, the new documents further shed light on the reason why IRS has asked Coinbase to hand over a broad range of customer data, including every customer account and detailed transaction records over a considerable period. Coinbase pledged to fight the request.

READ MORE >>> https://news.bitcoin.com/807-people-declared-bitcoin-tax-purposes-according-irs/

[Iranus]

No one will ever want to pay tax on digital currency assets.  I doubt that governments can't find every single person that owns Bitcoin and make them pay tax on it.

The good thing is that Coinbase is actually pretty much irrelevant.  They're getting one specific online wallet provider to give details about their users, so anyone who actually owns Bitcoin instead of holding it online shouldn't have any trouble.  Hopefully if Coinbase fail it'll give users an incentive to download a software wallet like Electrum or even a full node instead of paying the tax.

[richardsNY]

It shows how desperate governments are if they force exchanges to hand over user information. I seriously can't wait for a decentralized exchange to serve us well (I am aware of Bitsquare.io but they are not fully decentralized). It would completely outrule the governments since they can't demand from a decentralized system to hand them over any sort of information. Till that time people will have to jump into the world of peer to peer trading if they are tired of these exchanges.