American clients, Coinbase, has made a lot of transactions during 2017, it is better to check your email. The company has sent out tax forms for 2017 even those customers who never expected this.
January 31, based in San Francisco, Coinbase cryptocurrency exchange, has released tax forms 1099-K for a certain segment of its customers in the United States. The company explains that this tax form is for customers whose total gross value of the transaction exceeds the required reporting threshold, and that more than 200 transactions or more than 20 000 $ in a year.
This also includes accounts of “business use” and GDAX account from which was made the sale of crypto-currencies in cash exceeding the threshold.
“Business use” applies only to those who received payments in exchange for the provision of goods or services. This does not apply to mining and transfers of personal funds from other wallets where their cryptocurrency.
Coinbase says: “We used the best information available to determine whether Your activity to account for business use, including but not limited to factors such as filling a shopping profile or the inclusion of sales tools.”
This can be compared to sellers, Etsy and Uber, which also populate the 1099-K.
Social networks and online forums cryptocurrency communities have been complaints from customers Coinbase. In addition to the obvious dissatisfaction that the transaction will be submitted to the IRS, people complain that they were not notified in advance, and, in particular, that the numbers are higher than expected.
If the client believes that Coinbase incorrectly filled out the form, it needs to provide them with information about transactions that have been credited by mistake, sending it to the email address of their support. Consulting with a tax specialist is also recommended.
The fact that Coinbase wants to avoid problems with the IRS, is not surprising. In November the court ruled that the company is obliged to provide personal data 14 355 account holders who from 2013 to 2015 bought, sold, sent or received cryptocurrency in excess of 20 000 USD.