US law firm says IRS is after tax evading Coinbase users

 

After an IRS investigation or audit is opened, it is too late to correct, tax lawyers are warned.

US law firm says IRS is after Coinbase users who withhold taxesNOTÍCIAS

The Tax Law Office of David W. Klasing, a Californian tax boutique, issued a public statement alerting investors that IRS (the U.S. Internal Revenue Service) is getting tough on Coinbase users.

The company’s tax lawyers and capital subsidy experts say they are monitoring an increase in IRS enforcement activity against Coinbase users who do not meet their tax and reporting requirements.

The evaders may „end up facing serious civil and criminal problems in the future,“ the company warns in its November 11 press release, adding:

„If you have not reported possession of Bitcoin or other virtual currencies in your previous tax returns or have presented an incomplete or misleading picture of your cryptomime reserves, the time to act to correct that is now. Once a criminal tax audit or investigation has begun, it will be too late to amend your returns or take advantage of a voluntary disclosure program. ”
Coinbase released a transparency report in October, which the law firm says should „serve as a great alert“ for exchange users. The report clearly showed that both the IRS and its Criminal Investigation Unit, as well as the FBI and CIA, were entering requests for information at the exchange.

The increase in IRS enforcement activity against tax avoidant Coinbase users seems to confirm that the exchange is cooperating closely with the federal authorities. As the company notes:

„This data [from the October report] makes it clear that the IRS is requesting information from Coinbase for the express purpose of verifying it against its own taxpayer data and looking for discrepancies where the Coinbase holdings were not reported in the taxpayers‘ declarations.
As previously reported, the US courts have so far retained the authority of the IRS to request comprehensive data and financial records as part of its investigations into the tax obligations of individual Coinbase users.