The Internal Revenue Service is looking for information on bitcoin users from Coinbase, one of the largest bitcoin exchanges in the U.S., as part of its efforts to uncover possible tax evasion.

The IRS sent a broad request known as a John Doe summons to Coinbase last week seeking information on all of the San Francisco-based service’s users, according to The New York Times. The request follows on the heels of a report earlier this month from the Treasury Inspector General for Tax Administration that found the IRS should be doing more to ensure taxpayers aren’t using virtual currencies like bitcoin to avoid taxes (see IRS Warned to Safeguard Against Illegal Use of Virtual Currency).

Register or login for access to this item and much more

All Accounting Today content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access