Why does Coinbase need to send transaction information to the IRS?

3 answers

• Mar 19, 2022 · 3 years ago
  Coinbase needs to send transaction information to the IRS for tax compliance purposes. As a digital currency exchange, Coinbase is required to report certain information about its users' transactions to the IRS. This helps the IRS ensure that individuals are accurately reporting their cryptocurrency gains and losses for tax purposes. By providing transaction information to the IRS, Coinbase is helping to create a more transparent and accountable cryptocurrency ecosystem.
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• Mar 19, 2022 · 3 years ago
  The IRS requires Coinbase to send transaction information as part of its efforts to crack down on tax evasion in the cryptocurrency space. Cryptocurrency transactions can be difficult to trace and regulate, making it easier for individuals to hide their income and avoid paying taxes. By requiring Coinbase to report transaction information, the IRS can better monitor and enforce tax compliance in the digital currency industry.
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• Mar 19, 2022 · 3 years ago
  As a digital currency exchange, Coinbase is obligated to comply with the regulations set forth by the IRS. Failure to provide transaction information to the IRS could result in legal consequences for Coinbase. Additionally, by cooperating with the IRS, Coinbase is demonstrating its commitment to operating within the legal framework and fostering trust among its users and regulators.
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