Coinbase Exchange Sends Tax Forms to Clients

The 1099-K form was received by those Coinbase users who carried out more than 200 transactions within a year for more than $20,000
02 February 2018   498

On January 31, Coinbase, a digital currency wallet and platform based in San Francisco where merchants and consumers can transact with digital currencies like Bitcoin, Ethereum, and Litecoin, has issued a 1099-K tax forms and sent them to some of its clients in the United States. 

In the United States, Form 1099-K "Payment Card and Third Party Network Transactions" is used to report payments received through reportable payment card transactions (such as debit, credit, or stored-value cards) or settlement of third-party payment network transactions.

According to Coinbase, the 1099-K form was sent to those clients who have processed more than 200 receipt transactions, or transacted more than $20,000 during past year, including the users of "business use" accounts.

We used the best data available to us to determine whether your account activity qualifies as Business Use, including but not limited to factors such as completion of a merchant profile or enabling merchant tools.

Coinbase Statement

The move of Coinbase disappointed many clients of the exchange as they understood that their transactions history would be reported to the The Internal Revenue Service, which is the tax collection agency that administers the Internal Revenue Code enacted by Congress. Moreover, some customers have reported that the figures in the tax forms were higher than they expected.

CheapAir to Switch Bitcoin Payment Processor

Popular travel booking website leaves Coinbase for Bitpay
23 April 2018   106

CheapAir began Bitcoin acceptation back in 2013. It was a first global travel industry player to accept cryptocurrency.

We were recently informed by our processing partner, Coinbase, that they will no longer support 'custodial' solutions for merchants, and are removing a number of the tools and features that we rely on to accept bitcoin from shoppers. These changes are scheduled to occur in a matter of weeks.

CheapAir Team

As company says, covertation of crypto to fiat is a key to companies ability to accept crypto.  Traditional airlines and hotel services accept only fiat currencies as payment.

It is also noted that it will accept other cryptocurrency, such as Bitcoin Cash, Dash and Litecoin as potentiotial options.

Our one giant concern is that Bitpay does not support 'non-payment protocol wallets' (wallets that aren't BIP-70 compliant). So if you do not have a compatible wallet, you would have to get one and use it as an intermediate stage for your Bitcoin payment.

CheapAir Team

However, while CheapAir said the integration with Bitpay has already completed, it foresees the adoption may not be smooth.