Open 24 hrs / 7 Days A Week
Real Tax Attorneys For Real Tax Issues

Fast Action. Proven Results.


IRS seeking bitcoin information

Due to possible underreporting of income, the IRS is taking a close look at bitcoin transactions. This is in part because Bitcoin values increased over 20 times in 2017. Also, many bitcoin transactions take place outside of the public light.

While such IRS crackdowns are not new, there are more and more consequences coming about due to such crackdowns. During the past decade the IRS has cracked down on reporting of foreign assets and income, and we have already seen the serious consequences due to that.

Coinbase and other cryptocurrencies

The IRS is focusing attention on cryptocurrencies introduced by big and small businesses that recently entered the market. Coinbase, one of the largest retailers of cryptocurrencies including bitcoin, was the subject of a recent federal court decision. It appears the IRS was asking Coinbase about extensive information on its users.

The IRS asked Coinbase to turnover identification of users including transaction information. By access to this information, the IRS was also hoping to access full user profiles and information to gain access to accounts. The IRS also sought copies of correspondence between users and Coinbase.

While the court did not allow for such a broad access to information, it does show how much information the IRS seeks. The agency is looking for information regarding individuals who they feel did not fully report gains due to bitcoin use. By such broad requests, the IRS likely is hoping to locate information that goes well beyond Coinbase users.

Please note that in the lawsuit, the IRS was not alleging wrongdoing on the part of individual Coinbase users. Rather, they were looking for this information because they believed there was underreporting going on by Coinbase and other bitcoin users overall.

Michigan taxpayers with significant bitcoin portfolios need to understand how serious the IRS is about cracking down on unreported income. These transactions can be enormously complex, and the failure to report income correctly can result in trouble with the IRS. Please remember that the penalties for underreporting are severe.

No Comments

Leave a comment
Comment Information

When you hire us, we can help: you:

  • Obtain emergency relief from IRS actions
  • Stop the IRS from garnishing your wages
  • Prevent levees from being placed on your bank accounts
  • Keep tax payments and penalties from spiraling out of control

Phone Answered 24/7

We are always available to answer your questions and put your mind at ease.

Call us today at
800-778-2741 for a free initial consultation

Competitive Pricing

We offer flat fees that fit your needs and your budget.

Read Our Pricing FAQ

What Past Clients Say About Us

I know I won't be getting those frightening letters anymore thanks to Chad Silver - such a weight off my mind!” - A. Gould, Ohio

Read More Testimonials

A Real History of Success

IRS debt of $682,437, Attorney Silver and his team negotiated the Debt down to zero.

View More Results

You Can Fight The IRS And Win. We Can Help.

No matter where you are in the process, we can help you make the best of your situation. Call us toll free at 800-778-2741 for a free case evaluation.

Get A Free Consultation »

Privacy Policy | Business Development Solutions by FindLaw, part of Thomson Reuters.

Back To Top