[2017-02-06] IRS Asks to Postpone Upcoming Hearing With Coinbase

TraderTimm

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Quote from: Coin-Keeper on February 06, 2017, 03:53:11 PM

The IRS could easily accomplish this by sending Coinbase an audit subpoena. In the USA if the IRS pulls you for an audit you WILL open your books. They did it to my company (not a btc company) and with great attorneys they still had full access to all payroll and checkbook ledgers (everything). If its in Coinbase's ledgers they can get to it if they have the will or inclination to do so.

Precisely this.

There is no way to register a company without the principal officers being known. Sure, there are some scammers out there selling the idea of bearer bonds and other dubious loopholes, but if the IRS sends you a subpoena you're going to comply unless you want your entire organization shut down.

I don't like the lack of privacy protection for the users, but it seems the IRS would have had more than one way to get the customer list in any case.

Coin-Keeper

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The IRS could easily accomplish this by sending Coinbase an audit subpoena. In the USA if the IRS pulls you for an audit you WILL open your books. They did it to my company (not a btc company) and with great attorneys they still had full access to all payroll and checkbook ledgers (everything). If its in Coinbase's ledgers they can get to it if they have the will or inclination to do so.

Karartma1

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Quote from: TraderTimm on February 06, 2017, 12:38:39 PM

Quote from: Karartma1 on February 06, 2017, 09:37:08 AM

Coinbase Could Pay $1 Million in Legal Costs Fighting the ‘Broad Subpoena’: I think this is truly unfair for them. A company should not be held responsible for its users' responsibilities. I mean this story is way worse than the Iphone/FBI unlocking one.
I'm not a big fan of exchanges but I'm for Coinbase on this one.

By their own definition Coinbase is a money transmitter.

I can't see how the CEO wouldn't understand that this was always a risk. The IRS has been known to audit corporations - and while I agree that targeting every user is broad, they're still treading on the line of being able to enforce existing law against what they perceive as potential abuse.

I'd prefer they had taken a more direct approach, but given its a government organization with very little staff given its size, I am not surprised they are asking for everything.

Just glad I never touched that service with a 100-meter pole... but I will be watching to see how they enforce individual fines/financial assessments.

I do see your point and I share the same feelings but as aso118 said this could be a very damaging legal precedent. I've never used coinbase myself but still we are talking about one of the biggest Bitcoin companies around. The whole ecosystem is likely to be affected by this story. Embarrassed

TraderTimm

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Quote from: Karartma1 on February 06, 2017, 09:37:08 AM

Coinbase Could Pay $1 Million in Legal Costs Fighting the ‘Broad Subpoena’: I think this is truly unfair for them. A company should not be held responsible for its users' responsibilities. I mean this story is way worse than the Iphone/FBI unlocking one.
I'm not a big fan of exchanges but I'm for Coinbase on this one.

By their own definition Coinbase is a money transmitter.

I can't see how the CEO wouldn't understand that this was always a risk. The IRS has been known to audit corporations - and while I agree that targeting every user is broad, they're still treading on the line of being able to enforce existing law against what they perceive as potential abuse.

I'd prefer they had taken a more direct approach, but given its a government organization with very little staff given its size, I am not surprised they are asking for everything.

Just glad I never touched that service with a 100-meter pole... but I will be watching to see how they enforce individual fines/financial assessments.

Idrisu

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Quote from: aso118 on February 06, 2017, 10:12:31 AM

Quote from: Karartma1 on February 06, 2017, 09:37:08 AM

Coinbase Could Pay $1 Million in Legal Costs Fighting the ‘Broad Subpoena’: I think this is truly unfair for them. A company should not be held responsible for its users' responsibilities. I mean this story is way worse than the Iphone/FBI unlocking one.
I'm not a big fan of exchanges but I'm for Coinbase on this one.

These kind of cases are best fought by the industry as a whole. Coinbase might have been targeted here, but a victory in its case against the IRS would benefit all exchanges. It makes sense if exchanges pool resources in this legal battle.

I support the case to continue, IRS will lose at the end because those companies that use coinbase are there. Like you have rightly said victory for coinbase is very for others exchangers and cryptocurrencies in general. The IRS should not be allow to have their way on this, if they are allowed others exchangers should expect more from IRS.

aso118

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★Nitrogensports.eu★

Quote from: Karartma1 on February 06, 2017, 09:37:08 AM

Coinbase Could Pay $1 Million in Legal Costs Fighting the ‘Broad Subpoena’: I think this is truly unfair for them. A company should not be held responsible for its users' responsibilities. I mean this story is way worse than the Iphone/FBI unlocking one.
I'm not a big fan of exchanges but I'm for Coinbase on this one.

These kind of cases are best fought by the industry as a whole. Coinbase might have been targeted here, but a victory in its case against the IRS would benefit all exchanges. It makes sense if exchanges pool resources in this legal battle.

Karartma1

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Coinbase Could Pay $1 Million in Legal Costs Fighting the ‘Broad Subpoena’: I think this is truly unfair for them. A company should not be held responsible for its users' responsibilities. I mean this story is way worse than the Iphone/FBI unlocking one.
I'm not a big fan of exchanges but I'm for Coinbase on this one.

Gembul

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News Bitcoin - IRS Asks to Postpone Upcoming Hearing With Coinbase

In November 2016, the IRS revealed a ‘John Doe’ summons against Coinbase. The tax agency is looking to obtain customer records “for the years ended December 31, 2013, 2014, and 2015, of United States persons who conducted transactions in a convertible virtual currency.” The IRS is particularly looking for those not reporting their taxes when using the cryptocurrency with the regulated exchange.

Following this event, Coinbase vowed to fight the matter in court as the company, and many within the Bitcoin community, believed the probe was an invasion of privacy. Furthermore, a Coinbase customer has entered his own litigation and is asking the tax agency to withdraw the court summons. Attorney and Coinbase user Jeffrey Berns filed a motion in December to fight the IRS request for the information on 3 million users. The initial proceedings would begin next week, but now the IRS has asked to reschedule the court hearing for March 23.

READ MORE >>> https://news.bitcoin.com/irs-postpone-upcoming-hearing-coinbase/

Topic: [2017-02-06] IRS Asks to Postpone Upcoming Hearing With Coinbase (Read 430 times)