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IRS Shrug Off Complaints About Investigating Coinbase Users

IRS Shrug Off Complaints About Investigating Coinbase Users
  • The Internal Revenue Service has argued that its summons on Coinbase legitimate in a recent filing.
  • The tax service spoke to a federal court on its investigation on the Coinbase customer, William Zietzke.

The Internal Revenue Service (IRS) in the United States has argued that its summons on the huge US crypto platform, Coinbase are in fact legitimate in a recent filing.

The US-based tax service spoke to a California federal court in that its investigation on the Coinbase customer, William Zietzke is completely legitimate, despite concerns.

Illegitimate

Despite Zietzke being completely clean, he claims that the IRS investigating him was completely out of its authority and the process was just plain wrong.

Zietzke is attempting to put an end to the summons issued to Coinbase, just a few months ago in June. This requested the platform that they release his financial records involving his 2016 return. 

Zietzke claimed that the summons was too broad of a request, as it was not restricted to the 2016 tax year only. 

The Internal Revenue Service was not impressed and said Zietzke was unable to show any evidence as to why the summons should not be enforced. 

In the filing, the agency wrote:

“Rather than allow the IRS to summon the information it needs from Coinbase, Mr. Zietzke invents an IRS surveillance conspiracy and argues that the IRS has all the relevant information it needs to determine whether he is entitled to the refund he claims − that is the limited, sometimes redacted, and ever changing information he has provided.”

They added:

“By the summons at issue, the IRS seeks information to do exactly what Congress charged it to do: make an accurate determination of Mr. Zietzke's tax liability.”

It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!

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