IRS Nabs Big Win Over Coinbase In Bid For Bitcoin Customer Data

Call it a win for the federal government - mostly. The Court has issued a ruling in the battle between the Internal Revenue Service (IRS) and Coinbase, a company which facilitates transactions of digital currencies like Bitcoin and Ethereum, to determine whether the IRS is entitled to customer data. Today, the Court granted in part and denied in part the federal government's petition to enforce the hotly contested summons: in other words, the IRS may legally investigate Coinbase account holders who may not have paid federal taxes on their virtual currency profits, but the scope of the summons has been dramatically narrowed.

IRS Nabs Big Win Over Coinbase In Bid For Bitcoin Customer Data

I knew this was going to happen eventually.

All governments *hate* Bitcoin and all crypto currencies.

Now the war will really begin...

a reply to: Riffrafter


Why shouldn't people pay taxes on their crypto-currency gains? I have to pay them on my other financial instruments and investments.

a reply to: Riffrafter

Haha, there it is. Using the FED to secure private data so the (Fed)-eral Reserve (private banking interests) can get their 'cut' of Bitcoin transactions. The beauty of bitcoin so far is it is unregulated by the Banking Industry or the Fed.

See how they run together.

The private banks intend to use the weight of federal gubment (thru the IRS) to illegally usurp bitcoins autonomy.

And if they won't subject we begin bombing just like in Libya. How dare Qaddafi and Bitcon violate the international Banking Cartels Dominion!

originally posted by: AugustusMasonicus
a reply to: Riffrafter


Why shouldn't people pay taxes on their crypto-currency gains? I have to pay them on my other financial instruments and investments.

Paying your taxes is fine. A big draw towards crypto-currencies is their anonymity (mostly).
Having the IRS all over the data pretty much eliminates that.

It's probably also a big reason that quite a few new ICO's exclude US Citizens.

I only use Coinbase for initial purchases of ETH or BTC, and then off to an anonymous wallet.

originally posted by: peter_kandra
Paying your taxes is fine. A big draw towards crypto-currencies is their anonymity (mostly).
Having the IRS all over the data pretty much eliminates that.

Oh well. It shouldn't come as a surprise for anyone investing in Bitcoin that they would have to pay taxes on their gains and that the IRS, among others, would be looking to enforce tax code.

a reply to: AugustusMasonicus

Why shouldn't people pay taxes on their crypto-currency gains? I have to pay them on my other financial instruments and investments.

Caesar's face is not on the coin. Bit coin is not a coin of the realm. That just pissses Trajan off, don't it...

It was only a matter of time, and with the huge jump in value for bitcoin in such a short time.. the only hold up would be how long it took the court case to cycle through.
In the end the govt is always going to get their cut of the pie.

originally posted by: intrptr

Caesar's face is not on the coin. Bit coin is not a coin of the realm. That just pissses Trajan off, don't it...

Your lack of knowledge about investment and taxable gains is not really relevant. I'd tell you to go educate yourself but I have better things to do like clip my toenails.

originally posted by: AugustusMasonicus

originally posted by: intrptr

Caesar's face is not on the coin. Bit coin is not a coin of the realm. That just pissses Trajan off, don't it...

Your lack of knowledge about investment and taxable gains is not really relevant. I'd tell you to go educate yourself but I have better things to do like clip my toenails.

Address the topic, not the poster.

a reply to: intrptr


The topic is about paying taxes on investments which you obviously do not understand which is why you resorted to hysteric hyperbole.

I would teach you about investing but I don't really have the time today. Or tomorrow.

Or ever.

originally posted by: AugustusMasonicus
a reply to: intrptr


The topic is about paying taxes on investments which you obviously do not understand which is why you resorted to hysteric hyperbole.

I would teach you about investing but I don't really have the time today. Or tomorrow.

Or ever.

Well when you get some free time I could use a lesson.

a reply to: notsure1


For you I would make time but I think a new thread would be more appropriate.

a reply to: AugustusMasonicus

Under the radar insults aren't working, this time. You whined about how you have to pay taxes and bit coin doesn't. May I recommend another investment, like bitcoin?

originally posted by: Riffrafter

Call it a win for the federal government - mostly. The Court has issued a ruling in the battle between the Internal Revenue Service (IRS) and Coinbase, a company which facilitates transactions of digital currencies like Bitcoin and Ethereum, to determine whether the IRS is entitled to customer data. Today, the Court granted in part and denied in part the federal government's petition to enforce the hotly contested summons: in other words, the IRS may legally investigate Coinbase account holders who may not have paid federal taxes on their virtual currency profits, but the scope of the summons has been dramatically narrowed.

IRS Nabs Big Win Over Coinbase In Bid For Bitcoin Customer Data

I knew this was going to happen eventually.

All governments *hate* Bitcoin and all crypto currencies.

Now the war will really begin...

This might be a good time to buy in. When hipsters think The Man is coming for their cryptocurrency, they're gonna keep buying more of it and driving the price up.

originally posted by: intrptr
Under the radar insults aren't working, this time. You whined about how you have to pay taxes and bit coin doesn't. May I recommend another investment, like bitcoin?

But you do have to pay taxes on Bitcoin proceeds. You'd know this if you understood investing. Or tax policy. Which you don't.

originally posted by: AugustusMasonicus

originally posted by: intrptr
Under the radar insults aren't working, this time. You whined about how you have to pay taxes and bit coin doesn't. May I recommend another investment, like bitcoin?

But you do have to pay taxes on Bitcoin proceeds. You'd know this if you understood investing. Or tax policy. Which you don't.

Yep it even says it right there on BC's website.

Paying taxes on Bitcoin income Tax compliance is a topic of concern for small businesses. We aren't accountants or lawyers, and can't give legal or accounting advice. But in many respects, Bitcoin transactions work very much like cash. Just like Bitcoin, cash is anonymous and doesn't leave a paper trail, yet is widely used in commerce every day. Ask yourself how you would handle a cash transaction. Do you accept cash transactions? Do you normally pay taxes on cash transactions? The answer for Bitcoin should probably be the same. As for how to decide what a Bitcoin transaction is worth: the IRS, as far as we know, has never issued a guide mentioning how to value Bitcoin transactions. But they have rules and guidelines on how to value transactions made in foreign currency or "cash equivalents". We imagine the accounting would be similar. With Bitcoins, there's likely to be some difference between the value of BTC when you received them as payment, versus when you go to exchange them for another currency like USD, should you decide to do so. This scenario, likewise, would be no different if you accepted foreign currency or gold as payment. Under some scenarios, it might make sense to book the dollar value of BTC income as it is received, and then to book any difference incurred when it is exchanged for fiat currency. Under others, it might make sense to book the whole thing at the time of exchange. Perhaps you might talk to your accountant. You don't need to get into a discussion with your accountant about block chains and private keys or the philosophy behind a decentralized currency. By comparing the fundamentals of Bitcoins to accounting concepts already well understood by the public, you can probably get all the answers you need. What would you ask your accountant if you decided that you wanted to accept Berkshire Bucks or 1-ounce gold coins as payment?

en.bitcoin.it...

Of course you have to pay taxes on gains. Did any one ever think Uncle Sam wasnt getting his cut?

originally posted by: notsure1
Yep it even says it right there on BC's website.

This should only come as a surprise for people who don't understand investing.

originally posted by: AugustusMasonicus

originally posted by: notsure1
Yep it even says it right there on BC's website.

This should only come as a surprise for people who don't understand investing.

Which is probably most of the people buying it. Maybe that's why IRS wants the list. If they audit these people, I bet a significant number of them didn't report their gains.

Well, most of the individuals buying it anyway. The farming ops probably know a bit more about taxes.

I feel like a brand new age is being born, and we get to witness it. The whole cryptocurrency thing is amazing to watch, speculate about, and, if you're not adverse to high risk, invest in.

Three things seem to be interconnected right now and worthy of sniffing out, imo.

~This case began in November of 2016 while Obama's IRS was still operating and right after Trump had won the election, but prior to him taking office. (Lots of "hurry up" things went on between Nov. 8, 2016 and Jan. 20, 2017.)

~The CFPB (Consumer Financial Protection Bureau) was still being run by Obama's recess appointee, Richard Cordray. The CFPB has no oversight. That's the way Elizabeth Warren set it up. (How convenient!) It was located and funded by The Federal Reserve.

~One of the things the CFPB was supposed to do is attempt to help consumers understand virtual currencies such as Bitcoin.

originally posted by: face23785
Which is probably most of the people buying it.

I would disagree. While it has been demonstrated that their are some truly ignorant people who don't understand investing and/or taxation on gains I think most people buying Bitcoin realize they will need to pay taxes on their gains.