• Voluntary Disclosure Window Closing for Bitcoin
  • January 27, 2017 | Authors: Mark E. Matthews; Scott D. Michel
  • Law Firm: Caplin & Drysdale, Chartered - Washington Office
  • On November 30 2016 a federal court in San Francisco authorised the Internal Revenue Service (IRS) to issue a John Doe summons to Coinbase Inc, which operates a web-based global convertible digital currency wallet and platform and the largest platform in the United States for the conversion of bitcoins to dollars. The summons seeks a wide array of records from 2013 to 2015 for any Coinbase user with a US address, telephone number, email domain or bank account. The records sought include account profiles, transaction logs, payment processing data, customer correspondence or emails, statements of account and all records reflecting or relating to the disbursement of funds to any user. In light of the court's ruling, US taxpayers using virtual currency transactions involving Coinbase who are not in tax compliance have an extremely short window to avoid potentially serious IRS action against them.