The U.S. federal court has allowed the IRS to continue to store data of a user of Bitstamp exchange. A Washington resident, William Zietzke, had sent a request to the Washington County District Court, asking for a court order that would stop the IRS from receiving information about Bitstamp exchange’s users. But the court denied the request.
Court rejects both the arguments made by William Zietzke.
Judge John Coughenour of the U.S. District Court for the Western District of Washington rejected two arguments made by William Zietzke who’s crypto transactions are being audited by the IRS. The first argument was that the petitioner had a constitutional right to financial privacy. The second argument made by the Washington resident was that the third parties could not be trusted with sensitive personal information.
IRS has to narrow the scope of a summons it had issued to Bitstamp.
The court has ruled that the IRS needs to narrow the scope of summons it had issued to Bitstamp.
Zietzke had filed a $104,482 capital gain for 2016, with two bitcoin transactions making up the bulk of the funds. But later he realized in 2017 that the transactions did not occur in 2016, and filed an amended return showing a capital gain of $410 and requesting a refund of taxes he’d paid. But IRS, in response, the tax agency began auditing his cryptocurrency transactions.