Bitcoin wallet service ordered to give IRS 3 years of user data

Bitcoin wallet service ordered to give IRS 3 years of user data

A California federal court judge has called on Coinbase Inc., a bitcoin wallet service, to give the IRS records of American user transactions from 2013 to 2015 to conduct an investigation into potential tax fraud. TagsBitcoin, Currencies, Law

On Wednesday, the Northern California District Court allowed the Internal Revenue Service to issue a "John Doe" summons to Coinbase in the pursuit of "information about US taxpayers who conducted transactions in a convertible virtual currency during the years 2013 to 2015," the US Department of Justice said. Coinbase is a virtual-currency exchange based in San Francisco, California.

Protecting Customer Privacy https://t.co/lIlrHn7Bgp

— Coinbase (@coinbase) November 18, 2016

"The taxpayers being investigated have not been or may not be complying with US internal revenue laws requiring the reporting of taxable income from virtual-currency transactions,” the IRS wrote in its request for the information, according to The Verge.

Virtual currency transactions are difficult to trace, and the IRS is concerned that anonymous users are hiding taxable income from US authorities. The IRS is targeting Coinbase because the company's records will identify owners of virtual currency wallets.

The John Doe summons is not necessarily an accusation that the company has committed wrongdoing, but is used "to obtain information about possible violations of internal revenue laws by individuals whose identities are unknown," the DOJ said.

In this case, US Magistrate Judge Jacqueline Scott Corley said there was reasonable belief that virtual currency owners are hiding taxable income.

"This John Doe summons directs Coinbase to produce records identifying U.S. taxpayers who have used its services, along with other documents relating to their virtual currency transactions," the DOJ said.

Coinbase argues that the request is a violation of its customers' privacy rights.

"We look forward to opposing the DOJ's request in court after Coinbase is served with a subpoena," a Coinbase spokesman told Reuters.



Add Comment

all comments

  Other news

more
Lauren Goodger's pals BLAST rumours the former The Only Way Is Essex star has split from jailbird love Joey Morrison

Lauren Goodger's pals BLAST rumours the former The Only Way Is Essex star has split from..

26-Jul, 14:00

Sources close to TOWIE star Lauren Goodger have denied her relationship...

Lyft gains on Uber while taxis tank: survey

Lyft gains on Uber while taxis tank: survey..

27-Jul, 04:02

Uber and Lyft both stole ridership from car rentals and taxis, according...

1 killed, 7 injured after Ohio State Fair ride malfunctions (GRAPHIC VIDEO)

1 killed, 7 injured after Ohio State Fair ride malfunctions (GRAPHIC VIDEO)..

27-Jul, 01:10

An 18-year-old man has died and at least seven other people aged 13 to 41...

Trump lauds potential 13k new jobs in Wisconsin Foxconn factory, but robots may land all the gigs

Trump lauds potential 13k new jobs in Wisconsin Foxconn factory, but robots may land all the..

27-Jul, 01:10

President Donald Trump has announced that electronics giant Foxconn is...

Colorado Boy Safe After Flying Saucer Scare

Colorado Boy Safe After Flying Saucer Scare..

05-Mar, 00:14

The father of a 6-year-old boy whose disappearance held the country in...

Witnesses describe horror at scene of London mosque attack

Witnesses describe horror at scene of London mosque attack..

19-Jun, 04:02

Witnesses at the scene of a suspected deadly terrorist attack outside a...

Apple, PerkinElmer rise; EQT, Seattle Genetics fall

Apple, PerkinElmer rise; EQT, Seattle Genetics fall..

19-Jun, 18:00

Stocks that moved substantially or traded heavily Monday: PerkinElmer...

Democrats seek suspension of Jared Kushner's security clearance, pending Russia probe

Democrats seek suspension of Jared Kushner's security clearance, pending Russia probe..

21-Jun, 22:38

House Democrats are raising concerns about the security clearance held by...