Libertarian think tank Cato Institute opined in its blog recently that the Internal Revenue Service believes that all Bitcoin users are tax cheats.
It cites the recent IRS “John Doe” summons sent to Bitcoin exchange Coinbase for records from all its users over a two year period. The demand, which CATO calls “shocking”, includes: “complete user profile, history of changes to user profile from account inception, complete user preferences, complete user security settings and history (including confirmed devices and account activity), complete user payment methods, and any other information related to the funding sources for the account/wallet/vault, regardless of date.”
The summons goes on:
All records of account/wallet/vault activity including transaction logs or other records identifying the date, amount, and type of transaction (purchase/sale/exchange), the post transaction balance, the names or other identifiers of counterparties to the transaction; requests or instructions to send or receive bitcoin; and, where counterparties transact through their own Coinbase accounts/wallets/vaults, all available information identifying the users of such accounts and their contact information.