This week’s summary of various cryptocurrency news and developments:
The IRS is seeking records on Coinbase’s customers, who transacted between 2013 and 2015
In a surprise tax probe, the Internal Revenue Service (IRS) is attempting to obtain records help by Coinbase, a prominent company in the cryptocurrency world. The targets of the investigation are not directly named, but it is known the investigation focuses on users in the US who did not pay taxes on transactions involving digital currencies, specifically between 2013 and 2015. The moves comes years after the IRS declared bitcoin and other digital currencies were to be regulated in the future, as if they were property. Tax professions in the US attacked the IRS’s move claiming it is too vague, while Coinbase itself plans to fight the tax agency’s request in court to protect user privacy.
The filing came just days after the Treasury Inspector General determined the IRS’ strategy when it came to income related to virtual currencies needed improvement. According to a document taxpayers who “receive virtual currency as payment for goods or services must, in computing gross income, include the fair market value of the virtual currency, measured in US dollars, as