The IRS demands user cryptocurrency data | Engadget Today

The agency suspects Coinbase customers aren’t declaring their cryptocurrency.

Coinbase will be forced to share the financial information of 14,355 users with the Internal Revenue Service (IRS), following a California federal court ruling. The move follows a year-long battle between the cryptocurrency company and the IRS, which believes a high number of customers are failing to report holdings on their taxes. Coinbase has some six million users, but fewer than 1,000 have officially declared cryptocurrency activity.

The data sharing affects every user who has bought, sold, sent or received more than $20,000 through their accounts in a single year between 2013 and 2015 — which Coinbase estimates to be 14,355 individuals. The company will have to turn over the user’s name, date of birth, address and taxpayer ID, plus records of all account activity.

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The IRS demands user cryptocurrency data | Engadget Today

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Kane Dane