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.
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.”.