Court Grants IRS Authority To Demand Identities Of Bitcoin Users At …

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Granted.

That was the ruling today out of a federal court in the Northern District of California authorizing the Internal Revenue Service (IRS) to serve a “John Doe” summons on Coinbase requesting the identities of United States Coinbase customers who transferred convertible virtual currency from 2013 to 2015. Coinbase, which is headquartered in San Francisco, California, is a company which facilitates transactions of digital currencies like Bitcoin and Ethereum.

The Department of Justice (DOJ) had made the request earlier this month (California Northern District Court, Case No. 3:16-cv-06658-JSC) on behalf of the IRS since a “John Doe” summons can only be served by the IRS with federal court approval. A “John Doe” summons is an order that does not specifically identify the person but rather identifies a person or ascertainable group or class by their activities. In the past, that’s included investors in a particular tax shelter or account holders at a defined financial institution: the IRS has made use of the procedure, for example, when seeking information about offshore accounts those related to the UBS investigation.

In granting the motion, Judge Jacqueline Scott Corley found that

Read more ... source: TheBitcoinNews