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Coinbase Subpoena in the Wake of J5 – IRS Cryptocurrency Enforcement

Coinbase Subpoena in the Wake of J5 - IRS Cryptocurrency Enforcement (Certified Tax Specialist)

Coinbase Subpoena in the Wake of J5 – IRS Cryptocurrency Enforcement (Certified Tax Specialist)

Coinbase Subpoena in the Wake of J5 – IRS Cryptocurrency Enforcement (2018)

Recently, the IRS was awarded a subpoena to inspect documents from Coinbase — in order to uncover cryptocurrency related income.

Specifically, the IRS is trying to determine:

  • Which U.S. persons own cryptocurrency;
  • Whether it is held on a U.S. or Foreign Exchange; 
  • Has the person sold or exchanged cryptocurrency;
  • Was the income reported; and
  • Was there an FBAR or FATCA Reporting requirement

Cryptocurrency Tax

Recently, we authored two Cryptocurrency articles:

  • Cryptocurrency International Reporting
  • Cryptocurrency U.S. Tax 

The articles summarize the different types of potential Reporting and/or Tax liability a person may be subject to when they have cryptocurrency and have not properly reported it, or paid tax.

Typically, if you own the currency and it is located outside the United States (presuming it is not a personal wallet) there is a strong likelihood that the US. government wants to know about it.  Likewise, if you have sold the cryptocurrency or otherwise exchanged it and receive a gain (which is typically taxed as capital gain) then the IRS wants to know about it.

IRS Joins J5

Recently, in July 2018 the IRS signed on to become a member of J5. The purpose is J5 is to uncover and enforce tax laws against individuals on a global scale involving unreported and undisclosed cryptocurrency.

In addition, the IRS has developed various tax enforcement groups designed to uncover worldwide cryptocurrency related crime; in other words, cryptocurrency has become a key enforcement priority.

Golding & Golding, A PLC

We have successfully represented clients in more than 1000 streamlined and voluntary disclosure submissions nationwide, and in over 70-different countries.

We are the “go-to” firm for other Attorneys, CPAs, Enrolled Agents, Accountants, and Financial Professionals across the globe.

IRS Offshore Voluntary Disclosure Specialist

IRS Offshore Voluntary Disclosure Specialist

Golding & Golding: Our international tax lawyers practice exclusively in the area of IRS Offshore & Voluntary Disclosure. We represent clients in 70+ different countries. Managing Partner Sean M. Golding is a Board-Certified Tax Law Specialist Attorney (a designation earned by < 1% of attorneys nationwide.). He leads a full-service offshore disclosure & tax law firm. Sean and his team have represented thousands of clients nationwide & worldwide in all aspects of IRS offshore & voluntary disclosure and compliance during his 20-year career as an Attorney.

Sean holds a Master's in Tax Law from one of the top Tax LL.M. programs in the country at the University of Denver. He has also earned the prestigious IRS Enrolled Agent credential. Mr. Golding's articles have been referenced in such publications as the Washington Post, Forbes, Nolo, and various Law Journals nationwide.
IRS Offshore Voluntary Disclosure Specialist