IRS Not Infringing Privacy Requesting Crypto Exchange Data: US Judge
Marie Huillet's original article for cointelegraph.com reduced by 74%
A California federal court has affirmed the validity of the United States Internal Revenue Service's request for data from crypto exchange Bitstamp in connection with an individual tax reporting case. Per a Nov. 25 filing, the court has found that five of the six arguments presented against the IRS "Lack merit," but has conceded on one point that the tax agency's summons was indeed overbroad, as the Petitioner contended.
In seeking a refund from the IRS to correct his error, the agency set out to investigate Zietke's case, requiring him to provide extensive data on his history of Bitcoin holdings and transactions. Zietke is alleged to have failed to inform the IRS of his use of crypto exchange Bitstamp, prompting the agency to summon data from the exchange about his holdings, as well as public keys and blockchain addresses associated with his transactions. As the court outlines, Zietzke has questioned the IRS' actions on six grounds; firstly, that it issued the summons to Bitstamp "In bad faith"; secondly, that it seeks data that is irrelevant to its audit of the Petitioner's reporting; thirdly, that it already possesses the information that it seeks from Bitstamp.
Zietzke's three subsequent arguments claim that the IRS allegedly made administrative missteps and - more crucially - has violated his reasonable expectation of privacy in Bitstamp's records. As reported, Zietke has made a similar attempt previously to quash an IRS summons issued to Coinbase, which was strongly contested by the IRS..
Donate Bitcoin to this address
Scan the QR code or copy the address below into your wallet to send Bitcoin
Donate Ethereum to this address
Scan the QR code or copy the address below into your wallet to send Ethereum
Donate With MetaMask
Donate ETH With MetaMask
Alternatively, support us by using the following referral links:
CN [too long; didn’t read]
Summarised crypto news.