After Coinbase Failed To Abide By IRS Notice 2014-21, Longtime Trader Files Official Complaint
After Coinbase Failed To Abide By IRS Notice 2014-21, Longtime Trader Filed Official Complaint
The United States Internal Revenue Service has certain requirements for the cryptocurrency industry, though they are still sorting out certain regulations. One particular notice, 2014-21, says that the current principles for taxes on typical transactions apply to the use of virtual currency. Essentially, this means that cryptocurrency transactions must follow the same guidelines as the rest of the market. However, veteran trader Peter Brandt believes that Coinbase is in direct violation of this notice.
Brandt filed an official complaint on the alleged violation and added that the exchange had also refrained from providing 1099s to US customers, which it is also required to do. Tweeting about his concerns with Coinbase, he encouraged the public to also file complaints with the IRS if they had not received 1099s.
The notice from the IRS had originally been implemented when Bitcoin’s popularity began to turn into substantial gains in the crypto industry, which is about the same time that Brandt accused Coinbase of robbing customers. In his opinion, Coinbase was purchasing BTC for $1,000 less than they were ultimately selling it to investors for.
Presenting his argument with absolutely no evidence, it should have been obvious to Brandt that major figures in the crypto market would take note, like Ari Paul. Paul suggested that Brandt purchase the BTC from the exchange that he claims has the lowest price, comparing his argument to the same circumstances as a retailer purchasing their products at wholesale prices.
This is not the first time that Brandt has brought down criticism on Coinbase. In a post on December 7th, 2017, just before Bitcoin reached its all-time high, he called the exchange “inept clowns.”