Coinbase, a popular cryptocurrency wallet and exchange service, recently lost a court case against the IRS and had to notify approximately 13,000 customers that Coinbase was going to release their information to the IRS. [Coinbase: IRS Notification] [US vs. Coinbase Inc. court document] As alarming as this is, it’s actually understandable. The IRS has already integrated with other electronic payment systems like credit card companies, Zelle (bank’s pay a person option), and PayPal so that the IRS doesn’t require businesses to issue 1099-MISC for contractors that were paid electronically and my guess is, Coinbase is now brought onboard.
Tax is inevitable but the IRS wants the cash value [gains/lost] on every transaction so if a person made a lot of microtransactions, it’s going to be a nightmare to track them. Coinbase does offer an API integration to your Mint (subsidiary of Intuit) account but at the same time Coinbase also cautions, “Any integration that involves API keys creates potential risks for account take-overs.”
Other than good’ol excel spreadsheet, does anybody have a viable option that I should look into?