Coinbase, Exchanges

Can the IRS See Coinbase?

The short answer is “yes,” the IRS can see Coinbase. Here’s how:

When you buy, sell, or otherwise transact in cryptocurrency, you are creating a “transaction.” That transaction is then sent to the blockchain, which is a digital ledger of all cryptocurrency transactions.

The blockchain is public, so anyone can see it.

The IRS can see Coinbase because Coinbase is a ” Wallet Service Provider.” That means that Coinbase stores your cryptocurrency for you.

NOTE: WARNING: The Internal Revenue Service (IRS) is actively monitoring digital currency transactions for possible tax evasion and other illegal activities. Therefore, it is important to be aware that the IRS can potentially see your Coinbase account activity. Coinbase may be required to provide the IRS with information such as transaction records or account details that could reveal your identity and activities. It is therefore essential to keep accurate records of your Coinbase transactions in order to comply with applicable tax laws and regulations.

When you want to buy or sell cryptocurrency, you have to go through Coinbase. That means that Coinbase has your information and the IRS can request it.

Coinbase is not the only Wallet Service Provider, but it is one of the largest and most popular. So if you’re wondering if the IRS can see Coinbase, the answer is “yes.”.

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