Users of Coinbase may have their identities and personal information handed over to the IRS thanks to the ruling made in a federal court in the Northern District of California. While the request was made early November 2016, it was only granted on November 30.
Case No. 3:16-cv-006658-JSC was set into motion by the IRS on the basis that some individuals may have been using Coinbase and Bitcoin to evade paying taxes. Due to this, the IRS has requested a “John Doe” summon on taxpayers that used Coinbase from the years 2013-2015.
The “John Doe” summon can only be acted upon after the federal court has given IRS approval to do so. It is typically used to find out more about investors that deal with tax shelters as well as holders of a financial institution as the