I recommend not using Coinbase in any regard and use another means of conducting your business with bitcoin. I can see this becoming a BIG mess. I now have to make sure I'm DEFINITELY organized. I can see a visit from the tax man very easily this year. If that happens, I will be on a mission to put an end to anyone doing business with Coinbase.
I doubt this is Coinbase's fault. They are a financial institution and there are very strict Federal regulations they have to adhere to. When you make a large deposit to your checking or savings the Bank will report it too. The transaction limit just smells like a government bureaucrat that probably can't even spell Bitcoin.
But please keep us apprised of the situation I would like to know what our liabilities are here in the US. Thanks.
I'll keep you updated.
NOTE:
I also see in the following instructions to Coinbase regarding form 1099-K:
Enter in box 1a the gross amount of the total reportable payment card/third party network transactions for the calendar year. Gross amount means the total dollar amount of total reportable payment transactions for each participating payee without regard to any adjustments for credits, cash equivalents, discount amounts, fees, refunded amounts, or any other amounts. The dollar amount of each transaction is determined on the date of the transaction.
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I suppose the tax man has a threshold of those amounts before investigating. I'm NOT doing anything wrong and I'm doing everything by the book with all laws and taxes. I'm only concerned about Coinbase making it look like I've conducted more business or made more profits than I actually made.