Frost & Associates, LLC
Call Today 202-618-1873

IRS fights to learn names of Coinbase customers

The Internal Revenue Service (IRS) has taken an interest in Coinbase. Coinbase is a cryptocurrency company, specializing in this form of digital currency. The federal agency has requested the company release the names of its customers.

Why is the IRS interested in Coinbase’s customers? The agency contends that cryptocurrency users may not report their proceeds on sales of this currency. Such proceeds would classify as gains and taxes are likely due. 

Will the IRS get this list? Coinbase has refused to provide the agency with a list of its customers. The IRS countered by suing for the information. A report in Bloomberg notes that the federal judge presiding over the case has allowed for the release of the names of customers that made a profit selling cryptocurrency but has also allowed for time for Coinbase to appeal the ruling.

What does this mean for investors? The case may impact those who partake in the cryptocurrency market. This is particularly true if they have realized gains from this investment.

This is just one of the many potential tax issues connected to the use of cryptocurrency. Since it is a relatively new form of currency, the IRS is still attempting to determine the best way to apply tax laws. Additional considerations, such as whether cryptocurrency through a foreign market should be reported as a foreign asset, remain unclear.

As such, those who are navigating this market are wise to seek legal counsel. An attorney can review your specific situation and help provide some guidance on the best options for tax compliance. 

No Comments

Leave a comment
Comment Information
Every Tax Problem Has A Solution

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Contact us today!

Frost & Associates, Attorneys at Law
1629 K Street NW, Suite 300
Washington, D.C. 20006

Phone: 202-618-1873
Phone: 202-505-6959
Fax: 888-235-8405
Washington Law Office Map

Columbia Office
10440 Little Patuxent Parkway, Suite 300
Columbia, MD 21044

Phone: 202-618-1873
Phone: 202-505-6959
Fax: 888-235-8405
Columbia Law Office Map

Annapolis Office
888 Bestgate Road
Suite 400
Annapolis, MD 21401

Phone: 202-618-1873
Phone: 202-505-6959
Fax: 888-235-8405
Map & Directions

Fairfax Office
8280 Willow Oaks Corporate Drive
Suite 600
Fairfax, VA 22031

Phone: 202-618-1873
Phone: 240-599-5009
Phone: 202-505-6959
Fax: 888-235-8405
Map & Directions

Rockville Office
199 E. Montgomery Avenue
Suite 100
Rockville, MD 20850

Phone: 202-618-1873
Phone: 703-621-7169
Phone: 202-505-6959
Fax: 888-235-8405
Map & Directions

Google+
Find us on...
  • Facebook
  • Twitter
  • Linked In