Coinbase and the IRS

A cost basis report we created in 2014 to help customers file their taxes

A path forward

As I mentioned above, Coinbase and the IRS have (I believe) a shared goal to ensure all U.S. customers pay their taxes. I believe a good option would be to use the same third party reporting mechanism that brokerage firms like Fidelity and Charles Schwab use today: the 1099-B form. We’d ideally like to see that structure applied evenly to all companies in the industry, but even if we’re required to go first, we’re ready to implement 1099-B reporting.

Conclusion

I think there is a reasonable path forward for both the IRS and Coinbase to accomplish our shared objectives. My belief is that the vast majority of people using digital currency today are not seeking to evade taxes. They are simply investors seeking returns, and people interested in a nascent new technology. If we make it easy for them to pay their taxes with clear reporting, they will.

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Brian Armstrong

Brian Armstrong

62K Followers

Co-Founder and CEO at @Coinbase. Increasing economic freedom in the world. Join us: https://www.coinbase.com/careers