IRS Still Going After 500,000 Coinbase Users Bitcoin Profits
Today Fortune.com released an article stating that the Bitcoin audit that the IRS is implementing on Coinbase users will no longer effect everyone, only those users with more than $20,000 of transactions in a year will be targeted. Now that may sound like a lot of money, but keep in mind it is not profits, its just transactions, if you buy/sell/buy/sell multiple times over a year you are still susceptible.
In other words, the scope of this is far too broad, the IRS may have backed down from its stance of auditing every single account, of which Coinbase has over a million, but it is still going to impact 500,000...that is a lot of users. And I would spectulate that this affects a lot of people who actually don't have $20,000 in BTC and made nothing close to this much in profit.
Overall, I think this is still far reaching, and we may see more revisions in the future. Thoughts?
Fortune article: http://fortune.com/2017/07/06/coinbase-irs-summons/
Cheers @moneybags
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$20,000 is the same amount the IRS used for Paypal (and over 200 transactions). Seems like a good thing.
Making cryptocurrencies legit!!!
I'm glad to see this happening and all of the bitcoin holders who say >>> "The moneyrunners never pay their fair share of taxes!" should be happy about it too. So you liquidated $100K in bitcoin and STEEM and converted it to dollars so you could buy that "neato" homestead in Arkansas huh? Well here's "hoping" you can time buying the low for the current selloff better than you timed your real estate purchase. Else you will be sitting on a homestead that's worth half what you paid in 1 year, plus you STILL owe the IRS $35K in capital gains taxes on your capital gains in your crypto sales. Yes, I'll be a buyer of your homestead if it drops another 15% in value. :-)
If you had $20,000 worth of bitcoin transactions, would you not realize the necessity in reporting the money you did make?