Bitcoin Slides As Coinbase Informs 13,000 Customers Of Imminent Data Handover To IRS

Having neared $12,000 last week, Bitcoin prices have dipped back into the red for February, accelerating below $10,000 this weekend as news that the US' largest cryto-exchange, Coinbase, will be turning over 13,000 customers' information to The IRS.

As CoinTelegraph reports, US-based cryptocurrency exchange and wallet service Coinbase sent an official notice Friday, Feb. 23 to approximately 13,000 of its customers whose information it is legally required to turn over to the US Internal Revenue Service (IRS).

image courtesy of CoinTelegraph

The IRS had initially asked Coinbase in July 2017 to hand over even more detailed information on every one of its then over 500,000 users in an attempt catch those cheating on their taxes. However, another court order in Nov. 2017 reduced this number to around 14,000 “high-transacting” users, which the platform now reports as 13,000, in what Coinbase calls a “partial, but still significant, victory for Coinbase and its customers.”

On Friday, Coinbase told the around 13,000 affected customers that the company would be providing their taxpayer ID, name, birth date, address, and historical transaction records from 2013-2015 to the IRS within 21 days.

Coinbase’s letter to these customers encourages them “to seek legal advice from an attorney promptly” if they have any questions. Their website also states that concerns may also be addressed on Coinbase’s Taxes FAQ.

The ongoing legal battle between Coinbase and the US government dates back to November, 2016, when the IRS filed a “John Doe summons” in the United States District Court for the Northern District of California.

On Feb. 13, personal finance service Credit Karma released data showing that only 0.04 percent of their customers had reported cryptocurrencies on their federal tax returns so far this tax season.

Comments

Heros Cognitive Dissonance Sun, 02/25/2018 - 14:16 Permalink

And now the IRS is using big data to construct a tax DNA profile of all US citizens.  Almost all filings are online, and the IRS is linking that together with data from various private sources onto multiple petabyte sized databases harvested by super computers.  Even if they can't crack bitcoin they can overturn the rock you are hiding under by other means.

In reply to by Cognitive Dissonance

DocMims Heros Sun, 02/25/2018 - 14:39 Permalink

Every transaction in bitcoin back to the first bitcoins is coded on every bitcoin miners computer.  Get enough of these nodes and some info on a few large transactions from coinbase and the government supercomputers can connect the dots to you.  Like when Mao allowed all the artists to come out and be free to do what they wished only to round them up 5 years later after they had outed themselves...US govt: "oh no! we can't track these bitcoins....Please don't use them = Don't throw me in the briar patch Mr. fox.

In reply to by Heros

Heros DocMims Sun, 02/25/2018 - 14:48 Permalink

And its all just data in the end, whether it is cracked or not yet cracked.

The IRS also used this same type of John Doe summons to get 4500 (iirc) names of "tax cheats" from UBS in 2009.  Based on those 4500 "cheaters" the IRS managed to enforce FATCA compliance on the entire planet.  Quite an astounding victory and it shows the power of US financial control.

Just as every Swiss and other "taxhaven" bank was forced into compliance, so will every international crypto exchange be too.

In reply to by DocMims

Buckaroo Banzai Truther Sun, 02/25/2018 - 20:52 Permalink

Only idiots believe that Bitcoin's value proposition is derived from its ability (or lack thereof) to avoid taxes. All transactions are on a public blockchain, and the protocol is mere pseudonymous, not anonymous.

No, Bitcoin's value is derived from its limited supply and strict adherence to an open, rules-based system that can only be changed by overwhelming stakeholder consensus.

In reply to by Truther

lookslikecraptome loveyajimbo Mon, 02/26/2018 - 00:32 Permalink

hey fucktard   I day trade the SP, what do u do for ur profession. Polish ur btc with a cloth???  Not my fault the crypto lads effed u and the other loser coiners. F u pussies. All blah blahblah. Change the world, BTFD BICHEZ, now u gotta pay taxes. How stupid r u monkeys any way. U morons thought the tax man would not catch up to you.  You douches ever make it out of hi school civics classes. BTFD!!!!!!!!!!!!   LOL  U people cant manage a piggy bank let alone a real financial situation in the real world. No problem with cryptos. Just the morons that bought them expecting anything that has not already been done. 

In reply to by loveyajimbo

BarkingCat Heros Sun, 02/25/2018 - 20:52 Permalink

Only those that wanted to do business in the US were the ones that the IRS had the power to do anything to.

Most got taken care of by their own governments as the US government told them to pass these data sharing laws or we will put you on our naughty list.

Also, the other governments like the idea of international cooperation on these issues. It ensures that their own tax sheep cannot escape shearing. 

In reply to by Heros

MK ULTRA Alpha Perimetr Sun, 02/25/2018 - 21:32 Permalink

You can't get a passport if you owe money to the government. That was another right taken during Obama era communism. Now if you owe money to the government you will have your passport taken or it will not be issued. You are a prisoner, taking the cue of loss of civil rights, the debt collection industry is now using the courts to put people in prison for debt. This after the government was used over and over to roll the economy and anyone with debt, lost everything. Doesn't anyone remember the 2008-9 financial meltdown. So a great amount of US debt is non-performing debt and prison time for anyone who doesn't pay.

Obama's IRS commissioner was a Jewish man who was a known crook from the Sally Mae and the other one, can't think of it now, but he was on the team that robbed the quasi government loan agency. The IRS under his control blocked conservative groups non-profit status, investigated conservative groups, for the Obama administration. As long as IRS conducted a war on conservatives, then the IRS could start a global crack down on Americans. At the same time, the IRS went after hundreds of thousands of white farmers and ranchers driving them off their land on false tax charges of which the IRS couldn't prove their charges and the farmers and ranchers couldn't defend. At the same time, the EPA was going all through farm America fining farmers for plowing, the dust, so it was a multi-prong attack on white rural America. And don't forget the Interior department conning people out of their land, threatening to drive people out etc, National Parks, BLM, Forest Department etc. all conducted a war on the American people, specifically white people who wanted to be left alone.

Thank you Obama.

And this is why I always say, either purge 500,000 of the 2 million federal government workers and their hundreds of thousands of contractors, abolish the agencies which the states have the same agencies, same function, same every fucking thing, it's a total duplication on the state level, or the federal government needs to be destroyed and this country divided up.

All of these agencies worked to destroy our people, stole their property and these federal agencies use the money stolen from so many. It's time to end this and Trump hasn't cut deep enough, and it's not the food stamp poor I'm talking about, IT IS THE NEARLY 300,000 FEDERAL GOVERNMENT WORKERS WHO THE GOVERNMENT WILL NOT RELEASE THEIR SALARY TO INVESTIGATIVE JOURNALIST, THE MONEY HANDED OUT FOR THE 300,000 IS OVER COMPENSATION FOR THE QUALITY OF WORK PERFORMED.

The fat of the federal government is the 300,000 over paid who do nothing except issue rules and regulations to steal from INNOCENT HONEST AMERICANS and everything the federal government does is to take our freedoms. These people must be purged now.

In reply to by Perimetr

Heros Ahmeexnal Sun, 02/25/2018 - 14:27 Permalink

I see the block chain as one giant, constantly evolving jig-saw puzzle.  Since it is public, every transaction can be traced to other public keys.  But just as with a jigsaw puzzle, the more pieces you fit together, the easier it gets to put the entire puzzle together.  In the block chains case, the lag between the current majority decrypted block chain snapshot and the most current block chain would be the anonymity window or lag would be one metric for IRS contractors running the massively parallelized databases.

In reply to by Ahmeexnal