Coinbase hands over information to the IRS

[Paractor]

I don’t think people using Coinbase were counting on the anonimity aspect of cryptocurrrncy, after all you have to provide a lot of info just to register. Although this doesn’t affect me currently as I am not US basedI do wonder if other countries will follow suit.

That's what people were counting on so not to have to worry about being taxed on it but now that they are being forced in handing over their transactions and even more so their personal information so to have the IRS track them down to pin them into paying taxes on the crypto they bought since a year ago all the sudden  WELL
That is a kick in the teeth if those individuals bought alot from coinbase not knowing they were going to have to pay taxes on those bitcoins and ethereum will this coming out suddenly.

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[redhondaxrm125]

Hey everyone, just wanted to update you guys with this recent article I found.

https://www.marketwatch.com/story/bitcoin-exchange-coinbase-is-handing-over-user-information-to-the-irs-2018-02-27

"Coinbase, one of the largest cryptocurrency exchanges, told customers Friday it will turn over 13,000 users’ data to the IRS within the next 27 days. The move comes in response to an IRS order issued in November 2016 to send records of users who bought bitcoin BTC, -1.48%  between 2013 and 2015 so the agency could determine who was evading cryptocurrency taxes. Coinbase initially resisted the order, but ultimately agreed to send the information of “higher-transacting” customers during that time."

What do you think the future of these taxes will be? Currently, as far as I know, in the United States, there is a tax based on your income bracket, and the tax can range from 0 - 20% of your net profit. Furthermore, it seems like this is pissing a lot of people off because they have to report taxes on every single transaction they make, and for some day traders, that's practically impossible. What are your takes on this situation? Do you think some anonymity has been lost in it?  Or is Coinbase just blatantly bad?

Bloody hell. This is freaking unfair. Why would anyone be using services of coinbase if this is the case? If you haven't used it yet, do not consider using it any time in the future. It clearly just isn't worth it. Although taxes are natural and are truly our responsibility, I wouldn't want to pay taxes if it doesn't go back to my country. I'd rather stress myself with other exchanges than to pay taxes that may be too high. But still, that depends on the situations of course.

[figmentofmyass]

Bloody hell. This is freaking unfair. Why would anyone be using services of coinbase if this is the case? If you haven't used it yet, do not consider using it any time in the future. It clearly just isn't worth it.

coinbase doesn't have any options. they are based and licensed in the US; the IRS and the US courts have jurisdiction. what are they supposed to do---swallow IRS enforcement and fines, and contempt of court charges?

i don't think their shareholders would like that.

[rodalutor]

Hey everyone, just wanted to update you guys with this recent article I found.

https://www.marketwatch.com/story/bitcoin-exchange-coinbase-is-handing-over-user-information-to-the-irs-2018-02-27

"Coinbase, one of the largest cryptocurrency exchanges, told customers Friday it will turn over 13,000 users’ data to the IRS within the next 27 days. The move comes in response to an IRS order issued in November 2016 to send records of users who bought bitcoin BTC, -1.48%  between 2013 and 2015 so the agency could determine who was evading cryptocurrency taxes. Coinbase initially resisted the order, but ultimately agreed to send the information of “higher-transacting” customers during that time."

What do you think the future of these taxes will be? Currently, as far as I know, in the United States, there is a tax based on your income bracket, and the tax can range from 0 - 20% of your net profit. Furthermore, it seems like this is pissing a lot of people off because they have to report taxes on every single transaction they make, and for some day traders, that's practically impossible. What are your takes on this situation? Do you think some anonymity has been lost in it?  Or is Coinbase just blatantly bad?

Bloody hell. This is freaking unfair. Why would anyone be using services of coinbase if this is the case? If you haven't used it yet, do not consider using it any time in the future. It clearly just isn't worth it. Although taxes are natural and are truly our responsibility, I wouldn't want to pay taxes if it doesn't go back to my country. I'd rather stress myself with other exchanges than to pay taxes that may be too high. But still, that depends on the situations of course.

Taxes are always due in the country of sale within reason, some countries you can get a deduction but mostly you'll pay taxes in the country of sale. If you went and bought a can of cola in the US you wouldn't complain that your VAT doesn't go back to whatever country you are from.

[veleten]

Coinbase was cornered,they had no leeway
IRS doesn't love around,you tell them something they don't like and your business,suddenly,can no longer operate
but they put up a good front and said they "saved" over 500.000 customer's records
yay,Coinbase,such a glorious victory 
also this is just a start,expect more companies and exchanges to follow

[1Referee]

People can complain as much as they want, but it's of no use. Coinbase serves as an example of what other exchanges will go through as well, and what Coinbase managed to "achieve" (bargaining the number of reports down to 13,000), will likely not work out for every other exchange. As much as I hate to say it, pay your due taxes concerning the coins you have been trading with on-exchange. I paid tax as well. I have been in denial for a long time, but I have to admit defeat - it's solely my mistake to have used a centralized service that I am fully verified at. If you think you won't be affected in the coming years, then you are just delusional. If you want to avoid paying tax entirely, then make sure that your coins will never hit a single centralized service.

[player514]

Hey everyone, just wanted to update you guys with this recent article I found.

https://www.marketwatch.com/story/bitcoin-exchange-coinbase-is-handing-over-user-information-to-the-irs-2018-02-27

"Coinbase, one of the largest cryptocurrency exchanges, told customers Friday it will turn over 13,000 users’ data to the IRS within the next 27 days. The move comes in response to an IRS order issued in November 2016 to send records of users who bought bitcoin BTC, -1.48%  between 2013 and 2015 so the agency could determine who was evading cryptocurrency taxes. Coinbase initially resisted the order, but ultimately agreed to send the information of “higher-transacting” customers during that time."

What do you think the future of these taxes will be? Currently, as far as I know, in the United States, there is a tax based on your income bracket, and the tax can range from 0 - 20% of your net profit. Furthermore, it seems like this is pissing a lot of people off because they have to report taxes on every single transaction they make, and for some day traders, that's practically impossible. What are your takes on this situation? Do you think some anonymity has been lost in it?  Or is Coinbase just blatantly bad?

Bloody hell. This is freaking unfair. Why would anyone be using services of coinbase if this is the case? If you haven't used it yet, do not consider using it any time in the future. It clearly just isn't worth it. Although taxes are natural and are truly our responsibility, I wouldn't want to pay taxes if it doesn't go back to my country. I'd rather stress myself with other exchanges than to pay taxes that may be too high. But still, that depends on the situations of course.

I think this was pretty much expected of Coinbase from a lot of people on these forums. I've seen a lot of popular opinions that tell most people to stay away from Coinbase, but it's very clear now that things can happen that aren't expected with exchanges that end up affecting the users. I agree that it's pretty messed up that the taxes don't go back to your own country, but I think it was a risk that you chose to take when using Coinbase.

Other exchanges could easily fall into the same situation; this time, it just so happened to be Coinbase.

[rodalutor]

People can complain as much as they want, but it's of no use. Coinbase serves as an example of what other exchanges will go through as well, and what Coinbase managed to "achieve" (bargaining the number of reports down to 13,000), will likely not work out for every other exchange. As much as I hate to say it, pay your due taxes concerning the coins you have been trading with on-exchange. I paid tax as well. I have been in denial for a long time, but I have to admit defeat - it's solely my mistake to have used a centralized service that I am fully verified at. If you think you won't be affected in the coming years, then you are just delusional. If you want to avoid paying tax entirely, then make sure that your coins will never hit a single centralized service.

As you said, coinbase is just the beginning. Every exchange in future will have to do extensive KYC and provide this information to the proper authorities. It will be used for taxation purposes as well as AML etc.

While I disagree morally about avoiding paying tax I do understand the lure and you're right to say that its just their fault for using a centralized exchange. Avoid anything centralized from now on and you might protect your finances from the tax man.

[darkangel11]

As you said, coinbase is just the beginning. Every exchange in future will have to do extensive KYC and provide this information to the proper authorities. It will be used for taxation purposes as well as AML etc.

While I disagree morally about avoiding paying tax I do understand the lure and you're right to say that its just their fault for using a centralized exchange. Avoid anything centralized from now on and you might protect your finances from the tax man.

You morally disagree? Meaning that if you did it you'd be losing sleep over it and feel it lay heavy on your conscience? I'm really amazed at how much people who were born and raised in a high tax environment begin to embrace the burden and actually speak against those who don't. If you were born and raised a slave, you'd most likely be accustomed to the burden, but you would not defend this way of life and go against those who want you to be free of it. You are like a slave that is being whipped and cursing at the other slaves who are protesting.
Maybe this will open your eyes a bit: https://www.youtube.com/watch?v=vb8Rj5xkDPk

[Walrus1]

I can't see coinbase being the bad guy in this. They fought it and lost. The government has endless resources to come after when they choose. If I do have to pay taxes on my coinbase transactions they should provide similar paperwork my equities accounts do

[mahimonliner]

Clearly the word "decentralized" is losing respect from Coinbase.
That would be the dumbest decision they have ever taken.

[Saisher]

I'm glad I am not part of coinbase they are both blatantly bad and they give away anonymity to their users, all they are after is money, they want to comply to authorities in exchange for betraying their users, the best advice is to stay away from Coinbase.

[friends1980]

As you said, coinbase is just the beginning. Every exchange in future will have to do extensive KYC and provide this information to the proper authorities. It will be used for taxation purposes as well as AML etc.

While I disagree morally about avoiding paying tax I do understand the lure and you're right to say that its just their fault for using a centralized exchange. Avoid anything centralized from now on and you might protect your finances from the tax man.

You morally disagree? Meaning that if you did it you'd be losing sleep over it and feel it lay heavy on your conscience? I'm really amazed at how much people who were born and raised in a high tax environment begin to embrace the burden and actually speak against those who don't. If you were born and raised a slave, you'd most likely be accustomed to the burden, but you would not defend this way of life and go against those who want you to be free of it. You are like a slave that is being whipped and cursing at the other slaves who are protesting.
Maybe this will open your eyes a bit: https://www.youtube.com/watch?v=vb8Rj5xkDPk

This was a libertarian project from the start, so if you morally disagree with avoiding taxes, you'd better return to your corporations, banks and fiat money.

[rodalutor]

As you said, coinbase is just the beginning. Every exchange in future will have to do extensive KYC and provide this information to the proper authorities. It will be used for taxation purposes as well as AML etc.

While I disagree morally about avoiding paying tax I do understand the lure and you're right to say that its just their fault for using a centralized exchange. Avoid anything centralized from now on and you might protect your finances from the tax man.

You morally disagree? Meaning that if you did it you'd be losing sleep over it and feel it lay heavy on your conscience? I'm really amazed at how much people who were born and raised in a high tax environment begin to embrace the burden and actually speak against those who don't. If you were born and raised a slave, you'd most likely be accustomed to the burden, but you would not defend this way of life and go against those who want you to be free of it. You are like a slave that is being whipped and cursing at the other slaves who are protesting.
Maybe this will open your eyes a bit: https://www.youtube.com/watch?v=vb8Rj5xkDPk

This was a libertarian project from the start, so if you morally disagree with avoiding taxes, you'd better return to your corporations, banks and fiat money.

Thanks for the personal attacks. I am not a slave, please allow me to explain my logic. In the country I live in there are many things provided for by the state that would not exist without taxes, if you don't pay your taxes you are still able to access these and are free-riding. This is something I disagree with because then your avoidance is in essence someone else's burden.

If people want to move somewhere which is a tax haven and not benefit from all of the things that are provided with tax revenue then that is perfectly fine and their choice, in fact it is probably the choice I would make. But leeching off of a system by avoiding taxes but still receiving the benefits is something that I stand by as being morally wrong.

This has nothing to do with banks or the likes. It's to do with being able to look your neighbour in the eye and not feel shame that you're piggybacking off of them.