Coinbase hands over information to the IRS

rodalutor

full member

Activity: 364

Merit: 105

WPP ENERGY - BACKED ASSET GREEN ENERGY TOKEN

Quote from: friends1980 on March 03, 2018, 05:21:23 PM

Quote from: darkangel11 on March 03, 2018, 04:38:46 PM

Quote from: rodalutor on March 03, 2018, 04:16:53 PM

As you said, coinbase is just the beginning. Every exchange in future will have to do extensive KYC and provide this information to the proper authorities. It will be used for taxation purposes as well as AML etc.

While I disagree morally about avoiding paying tax I do understand the lure and you're right to say that its just their fault for using a centralized exchange. Avoid anything centralized from now on and you might protect your finances from the tax man.

You morally disagree? Meaning that if you did it you'd be losing sleep over it and feel it lay heavy on your conscience? I'm really amazed at how much people who were born and raised in a high tax environment begin to embrace the burden and actually speak against those who don't. If you were born and raised a slave, you'd most likely be accustomed to the burden, but you would not defend this way of life and go against those who want you to be free of it. You are like a slave that is being whipped and cursing at the other slaves who are protesting.
Maybe this will open your eyes a bit: https://www.youtube.com/watch?v=vb8Rj5xkDPk

This was a libertarian project from the start, so if you morally disagree with avoiding taxes, you'd better return to your corporations, banks and fiat money.

Thanks for the personal attacks. I am not a slave, please allow me to explain my logic. In the country I live in there are many things provided for by the state that would not exist without taxes, if you don't pay your taxes you are still able to access these and are free-riding. This is something I disagree with because then your avoidance is in essence someone else's burden.

If people want to move somewhere which is a tax haven and not benefit from all of the things that are provided with tax revenue then that is perfectly fine and their choice, in fact it is probably the choice I would make. But leeching off of a system by avoiding taxes but still receiving the benefits is something that I stand by as being morally wrong.

This has nothing to do with banks or the likes. It's to do with being able to look your neighbour in the eye and not feel shame that you're piggybacking off of them.

friends1980

legendary

Activity: 1582

Merit: 1059

nutildah-III / NFT2021-04-01

Quote from: darkangel11 on March 03, 2018, 04:38:46 PM

Quote from: rodalutor on March 03, 2018, 04:16:53 PM

As you said, coinbase is just the beginning. Every exchange in future will have to do extensive KYC and provide this information to the proper authorities. It will be used for taxation purposes as well as AML etc.

While I disagree morally about avoiding paying tax I do understand the lure and you're right to say that its just their fault for using a centralized exchange. Avoid anything centralized from now on and you might protect your finances from the tax man.

You morally disagree? Meaning that if you did it you'd be losing sleep over it and feel it lay heavy on your conscience? I'm really amazed at how much people who were born and raised in a high tax environment begin to embrace the burden and actually speak against those who don't. If you were born and raised a slave, you'd most likely be accustomed to the burden, but you would not defend this way of life and go against those who want you to be free of it. You are like a slave that is being whipped and cursing at the other slaves who are protesting.
Maybe this will open your eyes a bit: https://www.youtube.com/watch?v=vb8Rj5xkDPk

This was a libertarian project from the start, so if you morally disagree with avoiding taxes, you'd better return to your corporations, banks and fiat money.

Saisher

full member

Activity: 2324

Merit: 175

I'm glad I am not part of coinbase they are both blatantly bad and they give away anonymity to their users, all they are after is money, they want to comply to authorities in exchange for betraying their users, the best advice is to stay away from Coinbase.

mahimonliner

full member

Activity: 350

Merit: 100

Join FlipNpik Telegram : t.me/flipnpikico

Clearly the word "decentralized" is losing respect from Coinbase.
That would be the dumbest decision they have ever taken.

Walrus1

member

Activity: 182

Merit: 20

I can't see coinbase being the bad guy in this. They fought it and lost. The government has endless resources to come after when they choose. If I do have to pay taxes on my coinbase transactions they should provide similar paperwork my equities accounts do

darkangel11

legendary

Activity: 2478

Merit: 1360

Don't let others control your BTC -> self custody

Quote from: rodalutor on March 03, 2018, 04:16:53 PM

As you said, coinbase is just the beginning. Every exchange in future will have to do extensive KYC and provide this information to the proper authorities. It will be used for taxation purposes as well as AML etc.

While I disagree morally about avoiding paying tax I do understand the lure and you're right to say that its just their fault for using a centralized exchange. Avoid anything centralized from now on and you might protect your finances from the tax man.

You morally disagree? Meaning that if you did it you'd be losing sleep over it and feel it lay heavy on your conscience? I'm really amazed at how much people who were born and raised in a high tax environment begin to embrace the burden and actually speak against those who don't. If you were born and raised a slave, you'd most likely be accustomed to the burden, but you would not defend this way of life and go against those who want you to be free of it. You are like a slave that is being whipped and cursing at the other slaves who are protesting.
Maybe this will open your eyes a bit: https://www.youtube.com/watch?v=vb8Rj5xkDPk

rodalutor

full member

Activity: 364

Merit: 105

WPP ENERGY - BACKED ASSET GREEN ENERGY TOKEN

Quote from: 1Referee on March 02, 2018, 11:17:02 AM

People can complain as much as they want, but it's of no use. Coinbase serves as an example of what other exchanges will go through as well, and what Coinbase managed to "achieve" (bargaining the number of reports down to 13,000), will likely not work out for every other exchange. As much as I hate to say it, pay your due taxes concerning the coins you have been trading with on-exchange. I paid tax as well. I have been in denial for a long time, but I have to admit defeat - it's solely my mistake to have used a centralized service that I am fully verified at. If you think you won't be affected in the coming years, then you are just delusional. If you want to avoid paying tax entirely, then make sure that your coins will never hit a single centralized service.

As you said, coinbase is just the beginning. Every exchange in future will have to do extensive KYC and provide this information to the proper authorities. It will be used for taxation purposes as well as AML etc.

While I disagree morally about avoiding paying tax I do understand the lure and you're right to say that its just their fault for using a centralized exchange. Avoid anything centralized from now on and you might protect your finances from the tax man.

player514

legendary

Activity: 1414

Merit: 1039

Quote from: redhondaxrm125 on March 01, 2018, 10:50:48 AM

Quote from: player514 on February 28, 2018, 02:47:24 AM

Hey everyone, just wanted to update you guys with this recent article I found.

https://www.marketwatch.com/story/bitcoin-exchange-coinbase-is-handing-over-user-information-to-the-irs-2018-02-27

"Coinbase, one of the largest cryptocurrency exchanges, told customers Friday it will turn over 13,000 users’ data to the IRS within the next 27 days. The move comes in response to an IRS order issued in November 2016 to send records of users who bought bitcoin BTC, -1.48% between 2013 and 2015 so the agency could determine who was evading cryptocurrency taxes. Coinbase initially resisted the order, but ultimately agreed to send the information of “higher-transacting” customers during that time."

What do you think the future of these taxes will be? Currently, as far as I know, in the United States, there is a tax based on your income bracket, and the tax can range from 0 - 20% of your net profit. Furthermore, it seems like this is pissing a lot of people off because they have to report taxes on every single transaction they make, and for some day traders, that's practically impossible. What are your takes on this situation? Do you think some anonymity has been lost in it? Or is Coinbase just blatantly bad?

Bloody hell. This is freaking unfair. Why would anyone be using services of coinbase if this is the case? If you haven't used it yet, do not consider using it any time in the future. It clearly just isn't worth it. Although taxes are natural and are truly our responsibility, I wouldn't want to pay taxes if it doesn't go back to my country. I'd rather stress myself with other exchanges than to pay taxes that may be too high. But still, that depends on the situations of course.

I think this was pretty much expected of Coinbase from a lot of people on these forums. I've seen a lot of popular opinions that tell most people to stay away from Coinbase, but it's very clear now that things can happen that aren't expected with exchanges that end up affecting the users. I agree that it's pretty messed up that the taxes don't go back to your own country, but I think it was a risk that you chose to take when using Coinbase.

Other exchanges could easily fall into the same situation; this time, it just so happened to be Coinbase.

1Referee

legendary

Activity: 2170

Merit: 1427

People can complain as much as they want, but it's of no use. Coinbase serves as an example of what other exchanges will go through as well, and what Coinbase managed to "achieve" (bargaining the number of reports down to 13,000), will likely not work out for every other exchange. As much as I hate to say it, pay your due taxes concerning the coins you have been trading with on-exchange. I paid tax as well. I have been in denial for a long time, but I have to admit defeat - it's solely my mistake to have used a centralized service that I am fully verified at. If you think you won't be affected in the coming years, then you are just delusional. If you want to avoid paying tax entirely, then make sure that your coins will never hit a single centralized service.

veleten

legendary

Activity: 2016

Merit: 1107

Coinbase was cornered,they had no leeway
IRS doesn't love around,you tell them something they don't like and your business,suddenly,can no longer operate
but they put up a good front and said they "saved" over 500.000 customer's records
yay,Coinbase,such a glorious victory Grin

also this is just a start,expect more companies and exchanges to follow

rodalutor

full member

Activity: 364

Merit: 105

WPP ENERGY - BACKED ASSET GREEN ENERGY TOKEN

Quote from: redhondaxrm125 on March 01, 2018, 10:50:48 AM

Quote from: player514 on February 28, 2018, 02:47:24 AM

Hey everyone, just wanted to update you guys with this recent article I found.

https://www.marketwatch.com/story/bitcoin-exchange-coinbase-is-handing-over-user-information-to-the-irs-2018-02-27

"Coinbase, one of the largest cryptocurrency exchanges, told customers Friday it will turn over 13,000 users’ data to the IRS within the next 27 days. The move comes in response to an IRS order issued in November 2016 to send records of users who bought bitcoin BTC, -1.48% between 2013 and 2015 so the agency could determine who was evading cryptocurrency taxes. Coinbase initially resisted the order, but ultimately agreed to send the information of “higher-transacting” customers during that time."

What do you think the future of these taxes will be? Currently, as far as I know, in the United States, there is a tax based on your income bracket, and the tax can range from 0 - 20% of your net profit. Furthermore, it seems like this is pissing a lot of people off because they have to report taxes on every single transaction they make, and for some day traders, that's practically impossible. What are your takes on this situation? Do you think some anonymity has been lost in it? Or is Coinbase just blatantly bad?

Bloody hell. This is freaking unfair. Why would anyone be using services of coinbase if this is the case? If you haven't used it yet, do not consider using it any time in the future. It clearly just isn't worth it. Although taxes are natural and are truly our responsibility, I wouldn't want to pay taxes if it doesn't go back to my country. I'd rather stress myself with other exchanges than to pay taxes that may be too high. But still, that depends on the situations of course.

Taxes are always due in the country of sale within reason, some countries you can get a deduction but mostly you'll pay taxes in the country of sale. If you went and bought a can of cola in the US you wouldn't complain that your VAT doesn't go back to whatever country you are from.

figmentofmyass

legendary

Activity: 1652

Merit: 1483

Quote from: redhondaxrm125 on March 01, 2018, 10:50:48 AM

Bloody hell. This is freaking unfair. Why would anyone be using services of coinbase if this is the case? If you haven't used it yet, do not consider using it any time in the future. It clearly just isn't worth it.

coinbase doesn't have any options. they are based and licensed in the US; the IRS and the US courts have jurisdiction. what are they supposed to do---swallow IRS enforcement and fines, and contempt of court charges?

i don't think their shareholders would like that. Cheesy

redhondaxrm125

full member

Activity: 266

Merit: 100

Quote from: player514 on February 28, 2018, 02:47:24 AM

Hey everyone, just wanted to update you guys with this recent article I found.

https://www.marketwatch.com/story/bitcoin-exchange-coinbase-is-handing-over-user-information-to-the-irs-2018-02-27

"Coinbase, one of the largest cryptocurrency exchanges, told customers Friday it will turn over 13,000 users’ data to the IRS within the next 27 days. The move comes in response to an IRS order issued in November 2016 to send records of users who bought bitcoin BTC, -1.48% between 2013 and 2015 so the agency could determine who was evading cryptocurrency taxes. Coinbase initially resisted the order, but ultimately agreed to send the information of “higher-transacting” customers during that time."

What do you think the future of these taxes will be? Currently, as far as I know, in the United States, there is a tax based on your income bracket, and the tax can range from 0 - 20% of your net profit. Furthermore, it seems like this is pissing a lot of people off because they have to report taxes on every single transaction they make, and for some day traders, that's practically impossible. What are your takes on this situation? Do you think some anonymity has been lost in it? Or is Coinbase just blatantly bad?

Bloody hell. This is freaking unfair. Why would anyone be using services of coinbase if this is the case? If you haven't used it yet, do not consider using it any time in the future. It clearly just isn't worth it. Although taxes are natural and are truly our responsibility, I wouldn't want to pay taxes if it doesn't go back to my country. I'd rather stress myself with other exchanges than to pay taxes that may be too high. But still, that depends on the situations of course.

Paractor

full member

Activity: 274

Merit: 133

Quote from: allycn on February 28, 2018, 02:12:59 PM

I don’t think people using Coinbase were counting on the anonimity aspect of cryptocurrrncy, after all you have to provide a lot of info just to register. Although this doesn’t affect me currently as I am not US basedI do wonder if other countries will follow suit.

That's what people were counting on so not to have to worry about being taxed on it but now that they are being forced in handing over their transactions and even more so their personal information so to have the IRS track them down to pin them into paying taxes on the crypto they bought since a year ago all the sudden WELL Roll Eyes

That is a kick in the teeth if those individuals bought alot from coinbase not knowing they were going to have to pay taxes on those bitcoins and ethereum will this coming out suddenly.

figmentofmyass

legendary

Activity: 1652

Merit: 1483

Quote from: player514 on February 28, 2018, 02:47:24 AM

What do you think the future of these taxes will be? Currently, as far as I know, in the United States, there is a tax based on your income bracket, and the tax can range from 0 - 20% of your net profit.

long term capital gains (if you hold for at least a year) are taxed at 15-20%---no more. short term capital gains get taxed at your normal tax rate, which can be a lot higher than that.

Quote from: player514 on February 28, 2018, 02:47:24 AM

Furthermore, it seems like this is pissing a lot of people off because they have to report taxes on every single transaction they make, and for some day traders, that's practically impossible.

dealing with BTCUSD day trading is easy. that's just like stock trading or similar. altcoins are more of a hassle since you need to determine the USD value of every trade.

Quote from: player514 on February 28, 2018, 02:47:24 AM

What are your takes on this situation? Do you think some anonymity has been lost in it? Or is Coinbase just blatantly bad?

totally expected. i remember hearing brian armstrong say something like it was coinbase's goal to be the most compliant exchange in the space. they fought this in court..... what else could we really expect? openly defy the IRS and the courts?

joeydangerous

sr. member

Activity: 350

Merit: 250

CryptoTalk.Org - Get Paid for every Post!

Quote from: player514 on February 28, 2018, 02:47:24 AM

Hey everyone, just wanted to update you guys with this recent article I found.

https://www.marketwatch.com/story/bitcoin-exchange-coinbase-is-handing-over-user-information-to-the-irs-2018-02-27

"Coinbase, one of the largest cryptocurrency exchanges, told customers Friday it will turn over 13,000 users’ data to the IRS within the next 27 days. The move comes in response to an IRS order issued in November 2016 to send records of users who bought bitcoin BTC, -1.48% between 2013 and 2015 so the agency could determine who was evading cryptocurrency taxes. Coinbase initially resisted the order, but ultimately agreed to send the information of “higher-transacting” customers during that time."

What do you think the future of these taxes will be? Currently, as far as I know, in the United States, there is a tax based on your income bracket, and the tax can range from 0 - 20% of your net profit. Furthermore, it seems like this is pissing a lot of people off because they have to report taxes on every single transaction they make, and for some day traders, that's practically impossible. What are your takes on this situation? Do you think some anonymity has been lost in it? Or is Coinbase just blatantly bad?

You've received that email or did you get it just from that article?
Coinbase is targeting people that have or had accounts on there so they could get their information instead of the people that didn't leave the website.

coinwizard_

jr. member

Activity: 336

Merit: 5

Most Advanced Crypto Exchange on the Blockchain

They fought them as hard as they could but ultimately they always win in the end. It will be very difficult to calculate unless they only count the amount when it was converted into fiat, it is so volatile it can't be calculated on a daily basis. If you bought at ATH and it tanks, then what - tax rebate?!

AltcoinAuthority

sr. member

Activity: 616

Merit: 251

CryptoTalk.Org - Get Paid for every Post!

Quote from: nsasuiteb on February 28, 2018, 01:59:55 PM

That would happen ultimately, but it seems there is no problem for those who have little transaction and trading activity. That would be painful to pay lots of taxes after years.

Paying that would be crazy. I would trade and not cash the money from the wallet till there is another exchange website available.

allycn

full member

Activity: 420

Merit: 110

I don’t think people using Coinbase were counting on the anonimity aspect of cryptocurrrncy, after all you have to provide a lot of info just to register. Although this doesn’t affect me currently as I am not US basedI do wonder if other countries will follow suit.

darkangel11

legendary

Activity: 2478

Merit: 1360

Don't let others control your BTC -> self custody

Quote from: Umkar on February 28, 2018, 12:53:53 PM

If in my country until such a tax is introduced, then for the time being I have nothing to fear. However, in the near future, I think, in almost all countries, crypto-currencies will be taxed everywhere. In this regard, anonymity in the crypto currency as such will practically cease to exist.

Such a tax? Meaning that you don't have an income tax in your country? There are some great countries that don't, that's a fact, so if you're lucky to live in the Emirates or Monaco, you can enjoy your freedom, but most of the world requires you to submit tax reports, even if there's no direct bitcoin tax.

Quote

However, it was naive to assume that the state would not notice the circulation of the crypto currency in its country and not to impose a high level of income on this activity by tax.

For some people that were living outside the system it's a smart calculation. For instance if you're a hippie that's been living in a trailer somewhere, or a young guy living with parents, and at some point you got into cryptocurrencies and earned a couple million USD, it would be a smart thing to sell some of it and leave the country, or even better, leave the country and move to a tax haven for a while. You have nothing to lose, no important job, no property, and those 400k more for every million USD earned would make a huge difference.

Topic: Coinbase hands over information to the IRS (Read 331 times)