Heads up: IRS might check your Coinbase

If you've got some coins just sitting in your Coinbase account and aren’t using it, keep in mind the IRS could find out about any profits you make, even if you leave that account be. Coinbase tracks all transactions and shares them with tax authorities, which could end up costing you. You can check out some experiences people have had here: There's some interesting stuff you can find here: There are more examples, but honestly, if you've got any account, it might be wise to pull your funds and either delete or freeze your account. Sure, it might mean missing out when Bitcoin prices go up, and you might not be able to pull out in time.

I read some comments on Reddit, and it seems that not everything is as it seems at first glance and that everything is actually the result of incorrect and irregular tax reports. US laws are very strict and complicated in this regard, and every crypto transaction is something that needs to be recorded and reported in every annual tax return. I’m not an expert, but the following explanation makes sense to me :

That's not the case in any of the examples and it's impossible for this to happen if you don't use that account! How could Coinbase report something to the IRS when your account is inactive and you don't sell anything? Besides, there is not a thing of "may" Coinbase does notify the IRS, that's like a feature, they report everything  . The thing is pretty clear, you sell coins on the exchange then you need to fill the tax form with these, the case you've mentioned first is about an incorrect report made by Coinbase over double transactions when one of those was actually canceled. The second one is that the guy did trade but because he claims his gains are zero he didn't file any tax form, yet she should have mentioned that when Coinbase reported it showed at 192k in volume, the author itself doesn't help at all, going down through his own comments, this comment is probably the best: Now assuming there is indeed a fault over at Coinbase adding transactions to your account even when you don't trade then there is little to help you with keeping zero funds on it, the errors could still happen. Leaving coins from 2017 on Coinbase and not even once login in to check what's happening? Lol...