It was around midnight, January 31, when K. received an email from Coinbase containing a 1099 tax form. That was strange enough – K. certainly didn’t expect a cryptocurrency exchange to be a conduit for government documents.
Then K. looked at how much Coinbase said he owed money on: $2.4 million.
“I initially freaked out, considering I’ve probably put in a max of $8,000 into Coinbase and somehow I may be liable for millions?” K. said in an online chat with CoinDesk.
The next business day, K. called Coinbase customer support, only to have a representative tell him he couldn’t answer the details on the phone, and to email the company instead.
Which he did, only to get a formulaic response showing the IRS guidance to Coinbase.
To this day, K says he has no idea where the $2.4 million figure came from. He says he is too busy to jump through more hoops with the largest exchange in the U.S., and that he feels safe in the knowledge that he doesn’t have to pay taxes on $2.4 million in earnings, since they don’t exist.
Read full article on CoinDesk: https://www.coindesk.com/bitcoin-soars-coinbase-customer-complaints/