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The IRS Just Declared War on Bitcoin Privacy

Submitted by: Odio @ 05:54 PM | Tuesday, November 22, 2016 | (url: https://fee.org/a...)

The Internal Revenue Service has filed a John Doe summons seeking to require U.S. Bitcoin exchange Coinbase to turn over records about every transaction of every user from 2013 to 2015. That demand is shocking in sweep, and it 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. And every single transaction:

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.


Category: Technology | 18 Comments
Tags: fuck irs

11-22-16 - 05:55 PM
Protecting Customer Privacy

Protecting Customer Privacy

Our customers may be aware that the U.S. government filed a civil petition yesterday in federal court seeking disclosure of all Coinbase U.S. customers' records over a three year period. The government has not alleged any wrongdoing on the part of Coinbase and its petition is predicated on sweeping statements that taxpayers may use virtual currency to evade taxes.

Although Coinbase's general practice is to cooperate with properly targeted law enforcement inquiries, we are extremely concerned with the indiscriminate breadth of the government's request. Our customers’ privacy rights are important to us and our legal team is in the process of examining the government's petition. In its current form, we will oppose the government’s petition in court. We will continue to keep our customers informed on developments in this matter.
11-22-16 - 05:59 PM
trump is a fascist doe
11-22-16 - 06:01 PM
Oh this is funny :D
quite clear message that the gubiment does not want unregulated markets with no control on the money supply.

I have my bitcoins on my private wallet on my computer, traded in russian BTC-e. Relatively sure russia will not be complying with any demands from IRS or such to release information on transactions.
11-22-16 - 06:02 PM
^^^ financial terrorist
11-22-16 - 06:04 PM
I used to recommend coinbase, then they started turning information over to law enforcement. If they manage to stand their ground on this it will change my opinion of them to slightly more favorable.
11-22-16 - 06:07 PM
Coinbase is too big.
You really wanna use something that disappears within months after your transactions. Can't subpoena something that hasn't existed in years, your transactions are gone in the wind (with you hopefully stashing your bitcoins in your socks etc.)
11-22-16 - 06:08 PM
So what do the American IRS have to do with a global trade in ones and zeros?

Isn't it all sort of virtual or is the main company who runs all that shit registered in the USA?

I thought it was like a cloud/distributed system that was basically outside of national law. Maybe they need to send a server into space or in international waters?

Do I need to get into dogecoin?
11-22-16 - 06:13 PM
Originally posted by ArakAtak  
So what do the American IRS have to do with a global trade in ones and zeros?

Isn't it all sort of virtual or is the main company who runs all that shit registered in the USA?

I thought it was like a cloud/distributed system that was basically outside of national law. Maybe they need to send a server into space or in international waters?

Do I need to get into dogecoin?


American IRS has nothing to do with the bitcoin network itself.
But it can however subpoena american based company to release their customer information. And from that information they can check which american citizens have done what kind of transactions. This is if the company records said transaction data.

If you send bitcoins through the bitcoin network without using a coinbase like service it is "untraceable", only the transactions that go through coinbase are targeted here.
11-22-16 - 06:22 PM
IRS Effort to Access Coinbase Records Could Take Months - CoinDesk


Also, this was filed last week and reported at Ars and NYT 4 days ago.

Also, "shocking."
11-22-16 - 06:35 PM
I'm not surprised. I've also reported my transactions to the IRS as required.

It would be stupid to have used coinbase if you were planning on dodging the taxes.
11-22-16 - 08:00 PM
[youtube]vZ0B_5N28vY[/youtube]
11-22-16 - 09:35 PM
odio is fucked. buying drugs online with bitcoin.
11-22-16 - 09:50 PM
No. The IRS is just going to ask me to pay taxes on every coin i've ever bought and haven't sold via coinbase. Whether or not they adjust for inflation :sick:
11-23-16 - 05:42 AM
pay taxes on what you've bought? wouldn't you be paying on when you sell?
11-23-16 - 09:55 AM
This is funny. Try to request a log of all social security transactions and see how far that goes.
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