During April, expect a lot of people completing their taxes in the country. This is done to avoid penalties from the BIR when caught. Truth be told, there is no tax law yet in the Philippines for cryptocurrency. In the US, however, failure to declare these will warrant a visit from their Internal Revenue Service (IRS).
This is what might happen to Coinbase’s 13,000 “high roller” users.
Coinbase and IRS
In July 2017, The US Internal Revenue Service (IRS) asked Coinbase to hand over 500,000 detailed user profiles. Coinbase looked at the court, and the court reduced it to 14,000 users. These are all users with literally thousands of funds within the Coinbase platform.
Coinbase and Affected Users
Coinbase sent a notice to these customers informing them of its decision to follow the IRS. The company sent the following information to the regulator – Taxpayer ID, Name, Birthdate, Address, and their transaction records from 2013 to 2015.
Coinbase encouraged customers to seek legal advice from a lawyer at the earliest moment possible.
Coinbase Report from Credit Karma
Source say that Coinbase caught the interest of the IRS as the result of Credit Karma’s data. This data shows that only 0.04% of the customers of the company declared cryptocurrencies in their Federal Tax returns. As we have listed Coinbase in our “Best Cryptocurrency Wallets” article, we will follow this news to inform those who have opted to use it as a bitcoin or ethereum wallet.