As bitcoin prices soared in Q4 2018, Coinbase saw a record number of new users adopt the relatively easy to use platform that allows customers to convert credit, debit and bank related fiat to cryptocurrency.
However, what appeared to be the wild west of crypto trading has ended in a court order for the popular crypto access point to hand over customer account info to the IRS. CCN reports that,
“The top US cryptocurrency exchange for bitcoin, Bitcoin Cash, Ethereum and Litecoin on Feb. 23 notified the 13,000 affected investors by email, informing them the other shoe had dropped. Coinbase will comply with a judge’s ruling in a California federal court to share customer data of 13,000 of its users with the Internal Revenue Service’s (IRS). The IRS was most concerned with accounts with at least $20,000 “in any one transaction type,” as per the court ruling.”
Bitcoin early adopter Andreas M. Antonopoulos tweeted,
Received notice from Coinbase today, that my account is one of the 13,000 that they will have to turn over to the IRS under the court order.
Not surprised, I knew I would be in that group. In case you were wondering, I've filed & paid taxes for my bitcoin income, gains/losses.
— Andreas M. Antonopoulos (@aantonop) February 23, 2018
Another users tweeted,
Good news: the IRS wanted info on 500,000 customers but the court says we only have to turn over records for 13,000.
Bad news: Baby, it's you. pic.twitter.com/beiEby6Xa4
— Ryan Godfrey (@rgodfrey) February 23, 2018
It remains to be seen how the US Gobvernemt plans to tax cryptocurrencies.