Anyone else get an email from coinbase saying you're fucked?

I tried finding a thread on here regarding the IRS summons and coinbase, but couldn't. I have not been in here in quite some time. I'm hoping a few people here know what I'm referring to... I received an email from Coinbase saying my account was one of the 13,000 accounts "affected" and they were sending all information to the IRS. They suggested lawyering up.
I read through the summons and needed clarification as at times it said "transactions totaling more than $20k in a single transaction" and at other times said "transactions totaling $20k in a year". I had to reach out to coinbase in an attempt to retrieve my account history- from everything I've been able to access and they've been able to access, they have no account activity prior to August 2017. They think it's in part because I reopened the account/made a new one with the same email and it somehow removed everything prior.
Anyway, this is under the guise of tax reporting/capital gains on BTC- but we all know that is total bullshit and a front for them to dig deeper. (If you moved BTC to a wallet elsewhere and never sold it, thus never profited, there are no taxes to pay) Looking for discussion on this and who else was impacted and what they are doing.
Do I need to burn my house and move to Belize? Thanks.


Comments


[108 Points] BelizeTourismOffice:

Belize is a beautiful place. See you soon.


[80 Points] 99999999999999999989:

Yeah the IRS is going to be interested in where you got the money to buy that coin probably. As I understand it, it is more than $20K per YEAR but I could be wrong.

Honestly the best bet might be to lawyer up, claim ignorance, and offer to pay the taxes. Maybe, just maybe you can get away with that...if you have a decent lawyer.

I mean how much coin are we talking here? Wait. Don't answer that. Also, probably delete this entire post.


[51 Points] hopfield:

Buy lube


[35 Points] TheMotto:

burn belize and hit the gym


[21 Points] queen0fpain:

Okay so I had a similar thing happen with me (less intense sounding tho but I may offer a tiny bit of help) with my PayPal account, the transactions totaled over 20k so they reported it as income to the IRS. However, they sent me paperwork to help me file my taxes for said income via a 1099k form (I think) so I just have to use that to report. However you have X amount of time to report so you don’t always have to file immediately, you can always amend, etc.

I may be totally useless to your situation but I’d try to get some more clarification / info / paperwork from them before freaking out. I would however, quickly take all of your info to a reputable tax preparer & get their take on things as well as contacting a few lawyers (make sure they offer free consultations before you decide to pay any retainer fees) to figure out your options.


[12 Points] ThaGreatest1:

Even though there's no capital gains, those are still big purchases so you gotta show where that money's coming from.


[9 Points] I_Hate_Rerock:

the first thing you want to do is find an accounting firm that understands bitcoin tax law. And go through the story with them. they will figure out what your tax options are.

A lawyer is rarely necessary for IRS issues unless it goes to court. i have handled my own issues over the years with the IRS or with my accounting firm if needed, every time they send me a letter saying I owe them $xxxx.

The IRS is not always right. they or their computers make mistakes just like us. I have won most of the demand letters from them except for the ones where I knew I was being too aggressive pushing the limits. And on one I did win where i said my figures are correct and I don't owe you $12,000. they sent me a letter back saying you are right and we found we owe you $4,000. How did i miss that? So stay cool calm and get an good bitcoin accounting firm.

Since Bitcoin is new turf and the tax laws and regulatory laws aren't in sync or stable, accounting is what you need ASAP. and accountants will represent you for a fee if the accounting language is over your head.

Good luck and may the Bitcoin be with you...

And if not, you know where you can go to find what you need to ease your pain and stress,


[3 Points] CirocInducedAnxiety:

That sounds fucked


[2 Points] mangoat12:

The IRS has no mercy. Rest in pieces


[2 Points] Mothafuka_Jones:

IRS is from satan


[3 Points] 5inister5:

could this potentially happen with localbitcoins also?


[3 Points] Ketsa:

Enjoy your "land of the free".


[3 Points] JburnaDNM:

If they have no records how do they have anything to send to the IRS? To me it sounds like you found a work around.


[3 Points] Hairybristols:

I think you Yanks would be better not using coinshit and using a different exchange that doesn't lick the IRS government cock on the reg


[2 Points] Mothafuka_Jones:

Thats a fucked up situation


[2 Points] Dnm_wanderer:

dont' worry about the trolls yet but do get a tax/finance lawyer (who you can trust) asap. were these dnm funds? whats the history of the coins before they hit coinbase? where you cashing out, buying in?


[2 Points] checks4daz:

all i know is if local bitcoin pulled this shit id be fucked, over 80btc sold in the last year, eat shit irs although i am now banned from western union.


[1 Points] AlpraCream:

I sent a large 10k+ transaction from btce to coinbase, hope they don't have the servers for them. this is only district 9(meaning s far your okay if you didnt do it somewhere else ) right? If not, I know a cpa that can help me out. Probably for all the weed coming out of there hey used district 9 as a place to look at. Legit weed sellers selling on dnms to avoid taxes makes a lot of sense if they want to target dispensaries.


[1 Points] BudDwyer666:

Say you got it all at a Bitcoin casino.


[1 Points] e1618978:

Just pay your capital gains tax on your 2017 tax return, no big deal. The FBI and DEA generally can't get access to your tax returns I don't think unless the president gives specific approval for them to have your info.

https://www.law.cornell.edu/uscode/text/26/6103


[1 Points] FryedSushi:

Will this happen with LibertyX too?


[1 Points] Clix828:

i have not, but ive noticed since the letters went out..Recently there has been a surge btc traders are claiming they were "hacked" and lost it all.


[1 Points] digydongopongo:

I got banned from coinbase lol. Didn't get this email though.


[1 Points] Picard69:

Sorry I've been gone all day and haven't been able to read the responses until now- WOW, did not expect such a response, thank you so much for that. Here are some other pieces of information I'd like to add to hopefully add a little clarity to the situation and some follow up questions for you as well.

1) Coinbase/IRS calculated the amount/worth of the transaction at the time of the transaction, not by the current rate. (So in 2015, most of them were when BTC was between $200-300; if we could have only predicted what would happen, right?)

2) I never had a single transaction totaling more than $3-4k. I never held on coinbase longer than 48-72 hours. Thus as some people have stated- the volatility in BTC circa 2015 was not more than a few dollars here and there. So the net gain or loss was next to nothing. (However there was a crash from in early 2015 from $300 to 200 which resulted in a loss of nearly $1k.)

3) I never sold BTC or cashed out BTC from coinbase to my bank account. Not once, not ever. It was always sent to a wallet offsite. (And who knows, maybe from there I sold it on LBC or elsewhere? Could've happened.)

4) As others have stated- "unrealized gains". How do they know I'm not currently holding that btc offsite and I'm not currently a millionaire? If I've sold nothing, I've made no gains, thus there is nothing to pay taxes on.

5) In my younger and more vulnerable days, I may have mistakenly made one deposit directly to a now defunct market. It was part of my evolution and learning experience ;) and I can only hope that does not come into play.

6) Total transactions from coinbase that year obviously must have been over 20k, but there is no way in hell it was over 40. I don't think it was even over 30k to be honest. I was not a big fish.

7) My biggest concern is that the IRS is using this as a fishing expedition for another government agency- just allowing them to get their foot in the door. That is the only thing that makes sense in my mind. As others have pointed out there is no proof of btc being sold- and even if it had been, the capital gains I feel were minuscule, so much so that it wouldn't be worth the effort they are putting into this...if there was not something else behind it.

I really don't know how this will play out. The one taxation attorney I attempted to reach out to didn't have a clue about bitcoin. So I feel very much on my own here. Like I said, I have been away from here for quite some time and very much consider myself retired. This was the only place I knew I could reach out to for help. I appreciate all the advice and comments so far. Not quite packing my bags for Belize yet.


[1 Points] boomybox:

This is why I never understood why people use coinbase. It's literally the worst way to buy bitcoin in terms of opsec.


[1 Points] FraterP:

So, you invested in btc, lost it. Shithappens.


[1 Points] Dunbunbler:

They just want their tax money. Pay the feds, you’ll be fine. You can claim long term tax if it’s over a year held (which will save you a bit).


[0 Points] JESUSgotNAIL3D:

Ruh roh

The game is now playing you.


[0 Points] jefeperro:

You should lawyer up.

I don’t know who told you that you don’t have a tax liability but you do. Capital gains doesn’t apply to currency fluctuations that you’ve held for more than 12 months.

There is no need to dig deeper. Rip al Capone


[0 Points] c3ntrifuge:

No. Because I followed the OPSEC bible.

Did you follow the OPSEC bible? If not, you sure prepare for the worst and save your cash. More than likely the IRS is going to raise next years gross taxable income amount for you.


[-1 Points] Nugget300O:

I received a similar messsge bruv. I lawyered up with J.G. Wentworth.

If you'd like their contact info give them a call at 877-CASH-NOW!!!


[-5 Points] penthat:

I did get that email. Tho, I'm not exactly planning to let it affect me in any way, I really couldn't care less. Let's see them actually do anything with that data. G'luck.