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Coinbase sends its users a tax form

01 February 2018 21:00, UTC

Coinbase, a major US-based cryptocurrency exchange operating with thousands of users around the world and tens of thousands - in the United States, starts to disseminate the messages containing the tax form 1099-K.

Whether or not the account is going to receive this tax form is depending on the number of transactions the user has made in 2017. If a user made over 200 transactions totalling to over 20,000 dollars and, of course, is a citizen of the United States - he or she will likely to receive this letter. However, there are some ways to appeal against the calculations made by the exchange.

Coinbase is likely learning from the mistakes of its past: the Internal Revenue Service was very upset with the fact that the exchange is not doing anything with users evading taxes and demanded the personal data of persons of interest in court - with a successful result. In the future, this tax form dissemination mechanism might prove handy for cryptocurrency exchanges working with the vast majority of citizens of one particular country. This is still better than users having to calculate taxes all by themselves.