Coinbase Sends American Clients IRS Tax Form 1099-K

[BADecker]

Coinbase Sends American Clients IRS Tax Form 1099-K

If you are an American client of Coinbase and made plenty of transactions during 2017, you better check your email. The company sent out tax forms for 2017 to many clients who were not necessarily expecting it.

Also Read: Bitcoin Tax Reporting Software Developer Node40 Acquired for $8m

IRS Tax Form



Coinbase Sends American Clients IRS Tax Form 1099-K on Jan 31

San Francisco-based cryptocurrency exchange Coinbase has issued 1099-K tax forms for a certain segment of its clients in the US on January 31. The company explains that it files 1099-K for customers who have received cash above the required reporting threshold, which is more than 200 receipt transactions or greater than $20,000 during the year.

This also includes "business use" accounts, as well as GDAX accounts in which sales of cryptocurrency for cash have occurred that exceed the thresholds.

Business use is meant to apply only to those who received payments in exchange for the provision of goods or services, not mining proceeds or transfers from other wallets they hold. Coinbase states that: "We used the best data available to us to determine whether your account activity qualifies as Business Use, including but not limited to factors such as completion of a merchant profile or enabling merchant tools." This is similar to Etsy sellers and Uber drivers who also file 1099-K forms.

What Can You Do?



Coinbase Sends American Clients IRS Tax Form 1099-K on Jan 31

Over at the crypto community's online forums and social media, complaints are already popping up from Coinbase clients upset about the move. Besides the obvious displeasure of learning that their transactions will be reported to the IRS, people are complaining about not being notified beforehand and above all about the figures being higher than what they expected.

Read more at https://news.bitcoin.com/coinbase-sends-american-clients-irs-tax-form-1099-k/.

[BADecker]

Voluntary Compliance is based on the fact that you and your name are not found anywhere in the IRS Code, and the only way that you can be forced into taxes is by some kind of “voluntary compliance” agreement that you voluntarily sign with the IRS when you fill out one of their forms. If you lose an IRS case in the courts, it's because you signed an IRS form, and an agreement with your attorney, thereby becoming a ward of the court, subject to whatever outcome they desire.

If you stand as a man/woman in court, present rather than represented by yourself or anyone else, you can be in common law court. Take your claim to a Federal District Court with a claim against a man/woman acting as an IRS agent, who has or is damaging you. You don't owe taxes until you say or otherwise show that you do.

Most of us don't know what this is about, because we have watched all those law programs on TV. Judge Judy is an example of a common law court where the judge has been elected by the "combatants" to be the judge. The alternative would be a jury, where the judge has no authority other than referee, if it is brought under common law in a court of record.

A court of record can only be held in a Federal District Court, or a State court. It is never held in an administrative court, like traffic court, or the IRS court, or any simple county or city court.

To understand more about all this, and how easy it really is, Google and Youtube search on "Karl Lentz common law." A good beginning look at what Karl does and how he does it is here:
https://www.youtube.com/watch?v=Twn96nj0jfw&list=PLHrkQxgz0mg6kUBciD-HIvTXByqjcIZ-D&index=10

To see an in depth, 5-your video of Karl, go here:
https://i.ytimg.com/vi/qN3MI70PFBw/hqdefault.jpg?sqp=-oaymwEXCPYBEIoBSFryq4qpAwkIARUAAIhCGAE=&rs=AOn4CLD2YCgqXIOvKqr-1kDjgy-U9UAZmQ

For some 500 video/audio snippets of Karl's points, go here:
https://www.youtube.com/user/765736/videos

[llama_rider]

the only way that you can be forced into taxes is by some kind of “voluntary compliance” agreement that you voluntarily sign with the IRS when you fill out one of their forms.

This is absolute nonsense.  See the 16th Amendment and 26 U.S. Code § 1.  If you're a US citizen who has realized capital gains on cryptocurrency, you are required to report your gains as income and pay taxes on them.  Exchanges which accept deposits from and withdrawals to US bank accounts can be expected to comply with IRS demands for information on their customers.  If you evade paying taxes on substantial cryptocurrency gains, there is a good chance that the IRS will find out eventually and you will be subject to civil and/or criminal penalties.