Coinbase Alert 13 Thousands Affected by IRS Resolution

Coinbase, a US-based crypto money exchange and also a crypto coin, has sent a notice to approximately 13,000 users on Friday (February 23rd). These 13,000 users were not randomly selected. The US Internal Revenue Service (IRS) recently requested Coinbase "legal" information.

The number of users for whom the IRS requested information was actually much more. In July 2017, the IRS asked Coinbase to provide detailed information about more than 500,000 users. The IRS's goal is to find out who is paying taxes and who does not. However, with the court decision in November 2017, the IRS demanded knowledge of only 14,000 users, not "500,000 users" but "high transaction volumes". Coinbase now says that this number is 13,000, and that it is "a partial but still important victory for Coinbase and its customers".

Coinbase said on February 23th that it had to send a notice to 13,000 affected users to send their tax ID numbers, names, birthdays, addresses, and transaction records between 2013 and 2015 to the IRS within 21 days.

Coinbase is also encouraging users to "get legal advice from an attorney as soon as possible" if they have any questions. In addition, there are answers to some of the questions on the site of the platform, which can be found in Coinbase's Tax FAQs.

This struggle between Coinbase and the US government has been ongoing since November 2016. The IRS issued "John Doe Celpleri" in the US District Court for the Northern District of California in November 2016.

On February 13, Credit Karma, a provider of personal finance services, published a report and found that only 0.04% of its customers paid tax on crypto money.