Not So Secret Anymore Cryptocurrency Accounts Exposed To IRS

cryptocurrency

The allure of cryptocurrencies began quietly in 2008, allegedly created by someone called ‘Satoshi Nakamoto.’ A small group of mostly technologically sophisticated people were aware of cryptocurrencies. Before long though, a mystique surrounded this supposedly untraceable digital currency and it came to the awareness of everyday people. The value of cryptocurrencies began to skyrocket and became something to invest in.

For years, cryptocurrencies seemed to be of little to no interest to the IRS.

But when regular folk began investing and holding accounts, they felt entitled to a piece of the action. Fast forward to 2017. The IRS has an active interest in taxpayers who hold cryptocurrency accounts.

A recent article states, “Coinbase recently notified 13,000 of its customers that it was turning their information over to the United States. Coinbase has told those affected that it would be providing their taxpayer ID (social security number), name, birth date, address and transaction records from 2013-2015 to the Internal Revenue Service (IRS), by March 16, 2018.”

There’s nothing quite like having your financial records handed over to the IRS by a third party to stir up deep panic.

Since Coinbase has 500,000+ customers and they are only handing over information on 13,000, you may or may not have anything to worry about.

If you have been the recipient of a letter from Coinbase telling you your info has been turned over to the IRS, what should you do? Coinbase advises the smart thing – contact a tax attorney. Anything else could have you digging a deeper hole with bigger fines for tax evasion. So, stay cool. Contact a reputable tax attorney who will help you manage the IRS problem correctly.