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Coinbase Loses Bid to Block IRS Probe of Bitcoin Gains

Nov. 29, 2017, 11:45 PM

Coinbase Inc. lost a bid to block an Internal Revenue Service investigation into whether some of the company’s customers haven’t reported their cryptocurrency gains.

U.S. Magistrate Judge Jacqueline Scott Corley in San Francisco ruled Nov. 29 that the tax agency’s demand for information isn’t overly intrusive. The price of bitcoin has been soaring and crossed $10,000 the same day.

“That only 800 to 900 taxpayers reported gains related to bitcoin in each of the relevant years and that more than 14,000 Coinbase users have either bought, sold, sent or received at least $20,000 worth of bitcoin in a given year ...