Customers platform Coinbase, whose total volume of transactions exceeded the required reporting threshold, namely 200 transactions or more than $20,000 during the reporting year, must complete tax form 1099-K, which the exchange has taken care to send.
The company explains that this category includes «business accounts» and accounts for GDAX, which have been selling cryptocurrency for cash in the amount of 20 000 dollars.
For commercial accounts includes only companies that received payments in exchange for goods or services. Mining and transfers of personal funds from other cryptocurrency wallets in this category are not relevant.
«We used all the available data in order to determine if your activity under the definition of «business,» including but not limited to factors such as filling a shopping profile or the inclusion of sales of instruments,» — said the representative of Coinbase.
Social networks and cryptocurrency communities forums are filled with complaints of dissatisfied customers. Besides the understandable discontent over what information about their transactions will be submitted to the IRS, people believe that pre was supposed to notice, and are outraged that the numbers are higher than expected.
A client who believes that Coinbase incorrectly filled document, you should provide them with information about transactions that it considers to be erroneous by sending it by e-mail technical support. For this reason it is recommended to consult a specialist on taxes.
It is known that in November last year the court ruled that Coinbase is required to provide personal information 14 355 account holders, who for 2013 — 2015 years, conducted trading operations and sent or received cryptocurrency in excess of $20 000. Therefore, the fact that the exchange wants to avoid problems with the IRS, is not surprising.