The IRS Is Puzzled: Why Out Of 500,000 Coinbase Users, Only 900 Reported Gains Or Losses

Jon Alternative Media, Blogosphere, Crypto Currency, Economy, Government

Almost exactly one year ago, the IRS realized that it could be leaving billions of dollars on the table in the form of uncollected taxes, and launched a tax-evasion probe on the largest US Bitcoin exchange, Coinbase, seeking to identify all Coinbase users in the U. S. who ‘conducted transactions in a convertible virtual currency’ from 2013 to 2015.
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In a vexing paradox for cryptocurrency traders who had hoped they could avoid the IRS indefinitely as someone, somewhere once may have mentioned, the higher the price of bitcoin rose, the more motivated the IRS was to obtain access to user transaction records. Or, as Bloomberg put it, “the exploding value of the cryptocurrency since its first real-world transaction in 2010 is one reason the U. S. Internal Revenue Service is pushing to see records on thousands of users of Coinbase Inc., one of the biggest U. S. online exchanges. The company’s digital currency platform allows gains to be converted into old-fashioned dollars in transactions that the IRS alleges are going unreported.”

This post was published at Zero Hedge on Nov 13, 2017.