Court Grants IRS Summons Seeking Bitcoin Users’ Data from Coinbase

BitsPlan

A federal judge has approved an Internal Revenue Service summons requiring bitcoin wallet and exchange Coinbase to disclose transaction records of bitcoiners between January 1, 2013 and December 31, 2015.

In statements, Caroline D. Ciraolo, head of the Justice Department’s Tax Division stated:

As the use of virtual currencies has grown exponentially, some have raised questions about tax compliance. Tools like the John Doe summons authorized today send the clear message to U.S. taxpayers that whatever form of currency they use – bitcoin or traditional dollars and cents – we will work to ensure that they are fully reporting their income and paying their fair share of taxes.

The “John Doe” summons – different from a normal summons since it doesn’t relate a specific known individual but an entire group –  by the IRS was authorized by a federal judge at the Northern California District Court on November 30, giving the tax agency the all-clear to investigate alleged tax fraud by Coinbase users, specifically bitcoiners.

Soon after the court order came to light, a Coinbase

Read more ... source: CryptoCoinsNews