IRS Coinbase investigation update

IRS Coinbase investigation update

http://ift.tt/1RfwK1f The IRS made demands to Coinbase to turn over information on every single one of its US users in a letter sent in May. The IRS launched the investigation in part because the price of bitcoin soared from $13 to over $1,100 during the years in question Only 802 people reported their bitcoin gains or losses in 2015 to the agency on IRS Form 8949 (Sales and Other Dispositions of Capital Assets). IRS asked Coinbase for a long list of details about its customers who bought or sold bitcoin between 2013 and 2015, If Coinbase had complied with the original summons, it would have forced it to turn over personal details related to over a million accounts, and over 500,000 active customer accounts. This caused an outcry among digital currency owners, and led senior members of Congress to send a sharply worded letter to the IRS that warned its probe was "overly broad" and extremely burdensome." Because of this, the IRS has released “narrowed summons” and has made the following notable changes: The IRS told a federal court it is now seeking information only for those accounts that engaged in transactions worth $20,000 or more. Eliminates request for payment information and security settings. Eliminates request for power of attorney letters and corporate minutes tied to third parties Limits request for correspondence between Coinbase and users to portions that cover account opening/closing and transactions. IRSMedic, the Law Offices of Parent & Parent LLP 60 E 42nd St #4600 New York, NY 10165 (212) 256-1335 https://youtu.be/vE4J7-_SlP0 IRS Medic