Can Governments Track Bitcoin?
Failure to report despite an obligation to do so can have serious consequences for an individual’s life and finances. Fines for making incorrect statements can be substantial and can even be considered a felony in certain circumstances.
Individuals may wonder if centralized cryptocurrency exchanges actively report to the IRS. Centralized exchanges issue tax forms to the IRS. Likewise, the IRS has issued so-called John Doe Summons to exchanges, including Coinbase (NASDAQ:), to ask for people’s information and catch those who attempt to commit fraud. their tax.