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Coinbase Ordered To Report 14,355 Users To the IRS (theverge.com)
Nearly a year after the case was initially filed, Coinbase has been ordered to turn over identifying records for all users who have bought, sold, sent, or received more than $20,000 through their accounts in a single year. The digital asset broker estimates that 14,355 users meet the government's requirements. The Verge reports: For each account, the company has been asked to provide the IRS with the user's name, birth date, address, and taxpayer ID, along with records of all account activity and any associated account statements. The result is both a definitive link to the user's identity and a comprehensive record of everything they've done with their Coinbase account, including other accounts to which they've sent money. The order is significantly narrower than the IRS's initial request, which asked for records on every single Coinbase user over the same period. That request would also have required all communications between Coinbase and the user, a measure the judge ultimately found unnecessarily comprehensive. The government made no claim of suspicion against individual users, but instead argued that the order was justified based on the discrepancy between Coinbase users and U.S. citizens reporting Bitcoin gains to the IRS.
They told me cryptocurrencies were anonymous :^)
It's the IRS, lol. Those miners about to be taxed, hope they didn't spend it all - they might need some of it + penalties.
Unless they:
:-)
- Recorded the closing bitcoin price on the day they received mining proceeds. (basis)
- Recorded the sale price of the bitcoins on the day(s) they sold them. (gain/loss)
- Recorded the power consumed during mining those coins and kept their power bill. (variable cost)
- Kept receipts for the mining hardware and the watt meter. (fixed costs)
- Reported the basis, gain/loss and expenses (costs) on their taxes.
If they did this they might not have any problems.
Thank you, Dr Pedant, for your learned and enlightening commentary.