Copy link
Increase text size
Decrease text size
Link copied

Judicial System Upholds IRS Authority to Collect Personal Data from Coinbase

Ruling Highlights IRS's Extensive Powers in Ensuring Tax Compliance and Privacy Considerations

Wed, 31 May 2023, 14:25 pm UTC

The judicial system has affirmed the Internal Revenue Service's (IRS) authority to collect personal information from Coinbase, a prominent digital currency exchange platform. This ruling highlights the IRS's expansive powers in ensuring tax compliance.

During the court hearing, District Judge Joseph N. Laplante dismissed James Harper's objections regarding the IRS's acquisition of his personal data. Judge Laplante confirmed that the IRS's practices, including the use of summons to gather personal information, did not violate Harper's right to a fair trial or protection against unreasonable searches and seizures. This ruling reinforces the broad jurisdiction of the IRS, allowing it to issue summonses in various situations.

A notable aspect of this case was Harper's argument regarding privacy infringement, which the judge found unpersuasive in the context of the Fourth Amendment. The judge noted that Harper willingly shared his information with Coinbase and that the company's privacy agreement explicitly warned of potential governmental data requests. These factors significantly weakened Harper's position, as his disclosure of information to Coinbase was voluntary.

Harper's relationship with Coinbase began in 2013 when he started depositing Bitcoin profits from his consulting services. In 2016, the IRS, aiming to enhance transparency and compliance in the cryptocurrency market, requested data from Coinbase through a John Doe summons targeting unidentified taxpayers. In the latest ruling, Judge Laplante sided with the IRS, stating that Harper had no legal basis to claim an interest in the records under the Fourth or Fifth Amendments.

Furthermore, the judge rejected Harper's due process violation claim and affirmed that he had no proprietary rights over the records. Even if he did, the summonses were subject to significant restrictions and required judicial approval.

TokenPost | [email protected]

<Copyright © TokenPost. All Rights Reserved. >

  • PUBLISH (NEWS) $0.000468 (-28.27%)
  • Bitcoin (BTC) $26,191.90 (+0.22%)
  • Ethereum (ETH) $1,585.76 (+0.82%)
  • Tether USDt (USDT) $0.999791 (-0.01%)
  • BNB (BNB) $211.74 (+1.71%)
  • XRP (XRP) $0.500634 (+0.67%)
  • PUBLISH (NEWS) $0.000468 (-28.27%)
Jul 15, 2021 (Thursday)
13:30
BTC Surges by 1.16% Within 5 Mins, Marking 31,824.01 USDT
12:06
BTC Surges by 1.12% Within 5 Mins, Marking 32,104.8 USDT
10:25
BTC Drops by 1.03% Within 5 Mins, Marking 32,171.88 USDT
02:13
TriumphX Scouts 'MINAMCOMPANY' CEO Woo-Seong Lee As Creative Director
02:00
ETH Tops List Of Crypto Net Inflow With $298.96 Mln In Past 10 Hours
Jul 14, 2021 (Wednesday)
13:14
BTC Surges by 1.03% Within 5 Mins, Marking 32,738.08 USDT
09:03
BTC Surges by 1.01% Within 5 Mins, Marking 31,899 USDT
02:30
Crypto Market Sentiment On Jul 14: Market In "Extreme Fear"
02:00
ETH Tops List Of Crypto Net Outflow With $224.97 Mln In Past 10 Hours
Jul 13, 2021 (Tuesday)
02:30
Crypto Market Sentiment On Jul 13: Market In "Extreme Fear"
02:00
ETH Tops List Of Crypto Net Outflow With $178.61 Mln In Past 10 Hours
Jul 12, 2021 (Monday)
02:30
Crypto Market Sentiment On Jul 12: Market In "Extreme Fear"
02:00
BTC Tops List Of Crypto Net Inflow With $164.82 Mln In Past 10 Hours
Jul 11, 2021 (Sunday)
21:31
BTC Surges by 1.02% Within 5 Mins, Marking 34,475.6 USDT
10:00
ETH Tops List Of Crypto Net Inflow With $122.76 Mln In Past 18 Hours
06:17
SOBA Listed On LATOKEN
02:30
Crypto Market Sentiment On Jul 11: Market In "Extreme Fear"
02:00
BTC Tops List Of Crypto Net Outflow With $87.56 Mln In Past 10 Hours
Jul 9, 2021 (Friday)
21:40
BTC Surges by 1.08% Within 5 Mins, Marking 33,911.8 USDT
02:30
Crypto Market Sentiment On Jul 09: Market In "Extreme Fear"
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.