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Taxes Are Coming: Coinbase Sends Tax Forms To Its U.S. Clients

Coinbase Sends Tax Forms To Its U.S. Clients

What happened

Coinbase, a U.S.-based cryptocurrency exchange, made a long-feared move. The company sent out 1099-K tax forms for 2017 to the clients who were active on the platform last year.

Will I get one, too?

Yes – if you are a U.S. resident and have received cash above the required reporting minimum, which is over 200 transactions or greater than $20,000 during the year. That includes “business use” accounts and GDAX accounts from which the crypto was sold for cash exceeding the thresholds. Otherwise – most likely not.

So what do I do?

First things first – check if your form has correct numbers. If you believe that the numbers are too high, contact Coinbase with regards to the disputed transactions.
Then – contact a tax advisor and get ready to pay.

What can we learn from it

  •  Coinbase reports transactions to the IRS.
  •  It does so without necessarily notifying the clients.
  •  Speculating on crypto – especially if you are in the U.S. – brings not only the great returns, but also the great responsibilities.
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