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The IRS Has Come Knocking at Bitcoin’s Door

At a time when regulationsglitchesprice swingsforkshacks, and fraud can’t seem to keep the cryptocurrency-mania down, there’s a new hurdle for it to overcome: the taxman.

Coinbase is one of the largest cryptocurrency exchanges in the world. But it’s also a prime target for the Internal Revenue Service. Last year, the IRS asked a federal judge to order Coinbase to surrender its customer records for the years of 2013-2015 because it suspects many people trading in digital currency aren’t reporting their gains to the government. Coinbase fought the summons, but on Wednesday it lost the battle.

According to Bloomberg:

U.S. Magistrate Judge Jacqueline Scott Corley in San Francisco ruled that the tax agency’s demand for information isn’t overly intrusive. The price of bitcoin has been soaring and crossed $10,000 Tuesday.

Coinbase framed the decision as a “partial victory” in a statement posted to Medium.

Original Story at Gizmodo.

 

From → tax audit