U.S. Urges Supreme Court to Reject Coinbase User’s IRS Privacy Claim
- The US government has asked the Supreme Court to uphold IRS access to Coinbase crypto records.
- The case revolves around a 2016 IRS scrutiny into an extensive tax underreporting on crypto gains.
The government of the United States has requested that the Supreme Court accept the Coinbase users’ challenge against the Internal Revenue Service’s effort to obtain their crypto transaction records.
On May 30, Solicitor General D. John Sauer claimed in his filing that the user of Coinbase, James Harper, has no Fourth Amendment right to protect his financial records held by the exchange.
The government argued that Harper willingly shared his data with Coinbase, and that the IRS followed the right legal process to get it via a judicially approved summons. The case revolves around a 2016 IRS scrutiny into an extensive tax underreporting on crypto gains.
At the moment, the IRS found a sharp gap between the millions of users of Coinbase trading the largest cryptocurrency, BTC, and comparatively few taxpayers who witnessed crypto gains.
As a result, the agency got a John Doe summons convincing Coinbase to turn over records on high-volume customers. The Coinbase user who traded Bitcoin on the exchange at the time of the relevant years then sued, arguing that the actions of the IRS amounted to an unconstitutional search of his personal records.
The Refusal of The Appeal
Lower courts did not agree to the ruling that the records of Coinbase are business documents, not the private papers of Harper, and that the IRS acted lawfully.
In the brief, the government stated that the Supreme Court model backs the IRS’s place. Quoting past cases like United States v. Miller, the government highlighted that persons have no reasonable anticipation of privacy in financial records held by third parties Coinbase.
The filing also highlighted to own privacy policy of Coinbase, which alerted users that detailed information could be shared with law enforcement. The government further stated that the petitioner made those arguments below, the court of appeals rightly refused them, as both were foreclosed by this model of the Court.
The Supreme Court has still not determined whether it will hear the case. A contradictional would leave in place the First Circuit’s ruling in favor of the IRS. On May 15, Coinbase revealed a data breach in which hackers bribed customer staff in India to obtain sensitive user information.
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U.S. Urges Supreme Court to Reject Coinbase User’s IRS Privacy Claim
- The US government has asked the Supreme Court to uphold IRS access to Coinbase crypto records.
- The case revolves around a 2016 IRS scrutiny into an extensive tax underreporting on crypto gains.
The government of the United States has requested that the Supreme Court accept the Coinbase users’ challenge against the Internal Revenue Service’s effort to obtain their crypto transaction records.
On May 30, Solicitor General D. John Sauer claimed in his filing that the user of Coinbase, James Harper, has no Fourth Amendment right to protect his financial records held by the exchange.
The government argued that Harper willingly shared his data with Coinbase, and that the IRS followed the right legal process to get it via a judicially approved summons. The case revolves around a 2016 IRS scrutiny into an extensive tax underreporting on crypto gains.
At the moment, the IRS found a sharp gap between the millions of users of Coinbase trading the largest cryptocurrency, BTC, and comparatively few taxpayers who witnessed crypto gains.
As a result, the agency got a John Doe summons convincing Coinbase to turn over records on high-volume customers. The Coinbase user who traded Bitcoin on the exchange at the time of the relevant years then sued, arguing that the actions of the IRS amounted to an unconstitutional search of his personal records.
The Refusal of The Appeal
Lower courts did not agree to the ruling that the records of Coinbase are business documents, not the private papers of Harper, and that the IRS acted lawfully.
In the brief, the government stated that the Supreme Court model backs the IRS’s place. Quoting past cases like United States v. Miller, the government highlighted that persons have no reasonable anticipation of privacy in financial records held by third parties Coinbase.
The filing also highlighted to own privacy policy of Coinbase, which alerted users that detailed information could be shared with law enforcement. The government further stated that the petitioner made those arguments below, the court of appeals rightly refused them, as both were foreclosed by this model of the Court.
The Supreme Court has still not determined whether it will hear the case. A contradictional would leave in place the First Circuit’s ruling in favor of the IRS. On May 15, Coinbase revealed a data breach in which hackers bribed customer staff in India to obtain sensitive user information.
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