Over a 21 day period, everything from, taxpayer ID, to names, to addresses but possibly the most important are historical transactions that took place between 2013 and 2015.
This is what 13000 Coinbase users were told recently. These developments come after a court order was granted in favour of the IRS in November 2017. However, the original number requested by the IRS had been reduced to 14000 (the original number is 500000), before further reducing it to 13000.
This number represents a 1% of total Coinbase users which sits at 13 million.
According to the order, these 13 odd thousand individuals have been singled out as “high-transacting customers.” . What exactly the threshold is for such a classification is not yet known. However the government agency did at one point request the details of people who traded or owned $20000( roughly R 230,000).
From the IRS’ point of view, they probably feel an intense urge to check on those who might have failed to report cryptocurrency related incomes. This theory holds strong when backed up by a Forbes report that stated 0.04% of Americans reported crypto gains and losses, while 7% of Americans own altcoin holdings.
Coinbase told its affected users the exchange is”
“unable to provide legal or tax advice” and recommended that its customers “seek legal advice from an attorney promptly”
After hearing the news of tax obligations on altcoin trading, a few BITCOIN community members earned themselves some attention by posting statements like:
“F#@k taxes man,” and “This is so f#@ked it’s like I didn’t earn anything.”
Looking through the eyes of one who sees potential in blockchain technology and the cryptocurrencies that are actually about something, crackdowns like this serve as a sign. They signal that we could be inching ever closer to mainstream acceptance, or glorious smash up of an ending.