According to Coinbase, from the IRS (IRS) initially received a request for data from more than 500,000 users, in connection with allegations that the holders of bitcoins, those transactions through Coinbase, did not pay the appropriate income taxes.
After a legal ordeal that lasted almost a year, Coinbase announced that the IRS was limited to data for more than 14 355 users, which is only 3% of the originally required. Must report to those who did not provide information about transactions in the amount of 20 thousand dollars.
After Coinbase ignored the request for verification of each transaction made from 2013 to 2015, it’s been months of litigation. Faced with the response of the trading platform, the IRS has been forced to moderate their appetites and to require the issuance of data only the largest “draft Dodgers.”
“Started over 12 months ago process, though not brought on today’s court decision a complete victory for Coinbase, this is a significant and unprecedented victory of kryptonyte and many thousands of clients that have been unfairly targeted actions of the IRS. Although we are disappointed that failed to win, we are proud to fight for our clients.” said David Farmer, a representative of public relations.
This result will give Coinbase a necessary respite, as its infrastructure is again feeling the strain of price volatility of bitcoins.
The IRS considers bitcoin as property and not as currency, in connection with any transactions with bitcoin are taxed according to the principle of taxation of property. It obliges owners of bitcoins to report to the IRS all of their transactions.