Coinbase 14,000 customers will be affected by IRS tax summons

nnnIn November, the US Internal Revenue Service (IRS) applied to the court for a user record of Coinbase during 2013 to 2015. Earlier this month, IRS, after being opposed by Coinbase and its customers, narrowed its investigation. However, Coinbase believes that this request is still too broad, and “pre-trial investigation” is no different, and thus strongly resist the IRS investigation request, to maintain the company’s own and its customers legitimate rights and interests.n
nnTranslation: Clovern
nDigital currency exchange start-up company Coinbase is struggling to resist the new round of the US Internal Revenue Service wants to get some of its customer information.n
nEarlier this month, IRS, after being opposed by Coinbase and its customers, tried to narrow the scope of the survey for start-up customers. And this divergence can be traced back to last November, when the tax authorities first sued the court, want to get Coinbase in 2013 to 2015 during the user records.n
nUltimately, the IRS told the court that it limits the scope of the survey to at least $ 20,000 for customers during the past few years. However, in the July 27 court filing, Coinbase that the request is still too broad, and “pre-trial investigation” is no different, and damage the interests of legitimate taxpayers, does not belong to the strict sense of the nature of the work.n
nIndeed, the argument against the IRS message from a single point of view is that the main purpose of the tax authorities’ move is to oppose criticism of its digital monetary policy.n
nCoinbase’s lawyer wrote in his objection file:n
nnCritics, such as Congress, the Office of Audit and the Treasury, have called on IRS to develop better policies, rules, data and processes on digital currency tax reporting. Under this pressure, IRS has decided to issue a secret subpoena to Coinbase These critics convey such a message that the IRS is “doing so hard” and does not continue to ignore the problem. “n
nnCoinbase went on to say that about 14355 accounts will be affected by this data request, according to the narrowing of the subpoena.n
nAccording to Jeff Cartwright, co-author of Coinbase ‘s internal audit, the 6178 accounts in these accounts were “less than $ 60,000” for cumulative sales, issuance and receipt (excluding purchases) between 2013 and 2015.n
nThe start-up enterprise eventually asked the court to dismiss the tax authorities’ request for a summons. In addition, Coinbase is seeking evidence hearings to indicate that there is no evidence that IRS is trying to avoid tax.n
n”The government agency has now ‘narrowed’ the scope of its request, but did not provide evidence to support its argument, nor did it explain why it was,” wrote the start – up lawyer.n

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