Posted on 12/01/2016 4:53:34 AM PST by TigerLikesRooster
Court Rules IRS Can Seek Information on Bitcoin Customers
Agency to serve Coinbase with summons as part of wide-ranging tax probe
By Paul Vigna
Updated Dec. 1, 2016 4:35 a.m. ET
A federal court on Wednesday ruled that the Internal Revenue Service can serve digital-currency-services company Coinbase with a “John Doe summons” that seeks detailed information on its customers’ transactions from 2013 to 2015.
The IRS and the Justice Department are looking for information about the use of the digital currency bitcoin and the possibility that it has been used to evade federal tax laws over the three-year period. The agencies don’t have any proof of tax evasion, and there is no allegation that Coinbase engaged in any wrongdoing.
“We are aware of, and expected, the Court’s ex parte order today,” Coinbase said in a statement. “We look forward to opposing the DOJ’s request in court after Coinbase is served with a subpoena. As we previously stated, we remain concerned with our U.S. customers’ legitimate privacy rights in the face of the government’s sweeping request.”
(Excerpt) Read more at wsj.com ...
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SLAMMM!!! Get out of here GREENIE Hillary WHA - NA - BE!!!!!! SLAM!!!! Cort dismissed!!!!!
No surprise there. Bitcoin was always vulnerable to people exchanging to fiat. This will just make the price go up more.
“The agencies don’t have any proof of tax evasion, and there is no allegation that Coinbase engaged in any wrongdoing.”
Then how in he!! can any one get a warrant for search? Isn’t there a little thing about probable cause and specifically stating what is being looked for in that great document.......
People who trade Bitcoin understand this. If you are not doing anything screwy, it is not a big deal.
Bitcoin as a tool for criminals was a non starter.
The underreporting of income is likely the gain made on the currency. Could be large amounts of tax plus penalties and interest to collect.
Yet another reason to abolish the dictatorial IRS
Sorry, I'm not as forgiving as you are. Koskinen, Lerner, and many others need to go to prison FOR A LONG TIME for their actions.
Clif High’s December ALTA report hints that a windfall tax on “excessive gains” might be attempted.
Untraceable digital currency terrifies authoritarians.
They want a cashless society and digital currency that they cannot control or track is their worst nightmare.
Kim Dotcom is setting up a new digital blockchain currency.
It’s to be the payment method for his new Megaupload 2 service. It’s basically a tweaked version of BitCoin if what I have heard is correct. It’s for micro-payments.
Suspicions about the necessity of encrypting Bitcoin use and transfer now entirely justified.
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