{"id":32265,"date":"2020-11-24T12:47:25","date_gmt":"2020-11-24T10:47:25","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=32265"},"modified":"2025-08-28T07:50:40","modified_gmt":"2025-08-28T04:50:40","slug":"irs-sends-cp2000-notices-to-coinbase-users-over-crypto-tax-debts","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/irs-sends-cp2000-notices-to-coinbase-users-over-crypto-tax-debts\/","title":{"rendered":"IRS sends CP2000 notices to Coinbase users over crypto tax debts"},"content":{"rendered":"<p>The Internal Revenue Service (IRS) has sent letters to cryptocurrency holders demanding payment of substantial tax debts to the state, CryptoTrader.Tax said.<\/p>\n<p><!--more--><\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">We have received dozens of support chats this past weekend from people who received CP2000 Notices from the IRS claiming they owed hundreds of thousands in taxes from non-reported crypto income.<a href=\"https:\/\/t.co\/aowsyEFe3o\">https:\/\/t.co\/aowsyEFe3o<\/a><\/p>\n<p>\u2014 CryptoTrader.Tax (@CryptoTraderTax) <a href=\"https:\/\/twitter.com\/CryptoTraderTax\/status\/1330985792857124868?ref_src=twsrc%5Etfw\">November 23, 2020<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>These notices are CP2000 notices \u2014 issued when the IRS identifies discrepancies between information reported by taxpayers and its own records. Some Coinbase users reported receiving such letters.<\/p>\n<p>One CryptoTrader.Tax client said the IRS charged him with underreporting income for 2018 and demanded an additional $127,000 in taxes and penalties. The agency contends that he did not include his cryptocurrency investments in his tax return.<\/p>\n<blockquote>\n<p>The firm said in a statement that over the past two days, dozens of people have contacted them who received the same notice from the agency.<\/p>\n<\/blockquote>\n<p>The company says the IRS is mistaken, and the issue stems from Coinbase\u2019s reporting methods and those of other platforms. They use Form 1099-K instead of 1099 or 1099-B.<\/p>\n<blockquote>\n<p>\u201c1099-K is not intended for cryptocurrency exchanges. It is designed for marketplaces where payments are accepted directly from third-party merchants, for example Uber, Lyft or Etsy,\u201d said CryptoTrader.Tax chief David Kammerer.<\/p>\n<\/blockquote>\n<p>This is not the first time cryptocurrency traders have received notices from the IRS. In July 2019 the agency asked for income from digital asset trading, and a month later for the exact sums of unpaid funds.<\/p>\n<p>In Coinbase\u2019s first transparency report, <a href=\"https:\/\/u1f987.com\/en\/news\/lawyers-call-irs-interest-in-coinbase-a-red-flag\">reported<\/a> data requests from the IRS to identify discrepancies with its information.<\/p>\n<p>Follow ForkLog news on <a href=\"https:\/\/vk.com\/forklogcom\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">VK<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Internal Revenue Service (IRS) has sent letters to cryptocurrency holders demanding payment of substantial tax debts to the state, CryptoTrader.Tax said.<\/p>\n","protected":false},"author":1,"featured_media":32266,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[138,558,26],"class_list":["post-32265","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-coinbase","tag-taxes","tag-usa"],"aioseo_notices":[],"amp_enabled":true,"views":"16","promo_type":"1","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/32265","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=32265"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/32265\/revisions"}],"predecessor-version":[{"id":32267,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/32265\/revisions\/32267"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/32266"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=32265"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=32265"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=32265"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}