Monday, 28 November 2016 09:50

US seeks details of digital currency users Featured

By

The US Internal Revenue Service has issued a broad order to the cryptocurrency exchange Coinbase to provide details of its users in order that it can be ascertained whether or not they have complied with internal US revenue laws.

The order, referred to as a "John Doe" summons was issued on 17 November, according to a report in The Guardian.

Experts told the newspaper that this was probably the beginning of a bid to try and pull digital currencies like bitcoin into the mainstream.

The IRS is seeking the details of all Coinbase users in 2013, 2014 and 2015.

Coinbase has said that it will fight the order in court.

Digital currencies are taxed in the same way that gold is, with capital gains tax to be paid when their value appreciates.

To back up its claims, the IRS cited three cases of anonymous users who had used digital currency to avoid paying taxes. Two of these were corporates with annual income of several million dollars; they used Coinbase wallets and hid bitcoin transactions as technology expenses on tax returns.

Some cryptocurrency experts told The Guardian that the IRS was making a test run after it had been blamed by the US treasury inspector-general for not doing enough to regulate digital currencies.

In a statement on 18 November, Coinbase said: "Our customers may be aware that the US government filed a civil petition yesterday in federal court seeking disclosure of all Coinbase US customers' records over a three-year period.

"The government has not alleged any wrongdoing on the part of Coinbase and its petition is predicated on sweeping statements that taxpayers may use virtual currency to evade taxes.

"Although Coinbase's general practice is to co-operate with properly targeted law enforcement inquiries, we are extremely concerned with the indiscriminate breadth of the government's request.

"Our customers’ privacy rights are important to us and our legal team is in the process of examining the government's petition. In its current form, we will oppose the government’s petition in court. We will continue to keep our customers informed on developments in this matter."

DIGITAL MARKETING HAS NO SOCIAL DISTANCING OR TRAVEL RESTRICTIONS

As part of our Lead Machine Methodology we will help you get more leads, more customers and more business. Let us help you develop your digital marketing campaign

Digital Marketing is ideal in these tough times and it can replace face to face marketing with person to person marketing via the phone conference calls and webinars

Significant opportunity pipelines can be developed and continually topped up with the help of Digital Marketing so that deals can be made and deals can be closed

- Newsletter adverts in dynamic GIF slideshow formats

- News site adverts from small to large sizes also as dynamic GIF slideshow formats

- Guest Editorial - get your message out there and put your CEO in the spotlight

- Promotional News and Content - displayed on the homepage and all pages

- Leverage our proven event promotion methodology - The Lead Machine gets you leads

Contact Andrew our digital campaign designer on 0412 390 000 or via email andrew.matler@itwire.com

CONTACT US!

LAYER 1 ENCRIPTION A KEY TO CYBER-SECURITY SOLUTION

Security requirements such as confidentiality, integrity and authentication have become mandatory in most industries.

Data encryption methods previously used only by military and intelligence services have become common practice in all data transfer networks across all platforms, in all industries where information is sensitive and vital (financial and government institutions, critical infrastructure, data centres, and service providers).

Get the full details on Layer-1 encryption solutions straight from PacketLight’s optical networks experts.

This white paper titled, “When 1% of the Light Equals 100% of the Information” is a must read for anyone within the fiber optics, cybersecurity or related industry sectors.

To access click Download here.

DOWNLOAD!

Sam Varghese

website statistics

Sam Varghese has been writing for iTWire since 2006, a year after the site came into existence. For nearly a decade thereafter, he wrote mostly about free and open source software, based on his own use of this genre of software. Since May 2016, he has been writing across many areas of technology. He has been a journalist for nearly 40 years in India (Indian Express and Deccan Herald), the UAE (Khaleej Times) and Australia (Daily Commercial News (now defunct) and The Age). His personal blog is titled Irregular Expression.

VENDOR NEWS & EVENTS

REVIEWS

Recent Comments