Nearly one year ago, the IRS initiated proceedings to obtain copies of essentially all Coinbase U.S. customers’ records for the three-year period 2013–2015.
On Wednesday, a federal judge in San Francisco ordered that Coinbase must supply the IRS with identifying information on users who had more than $20,000 in annual transactions on its platform between 2013 and 2015.
Coinbase is ordered to produce the following documents for accounts with at least the equivalent of $20,000 in any one transaction type (buy, sell, send, or receive) in any one year during the 2013 to 2015 period:
- the taxpayer ID number
- birth date
- records of account activity including transaction logs or other records identifying the date, amount, and type of transaction (purchase/sale/exchange), the post transaction balance, and the names of counterparties to the transaction
- all periodic statements of account or invoices (or the equivalent)
However, Coinbase assumes that it won a partial victory in court. Company believes that it reached 2 important victories.
First, the government initially sought private financial records of approximately 500,000 account holders, but in response to Coinbase’s continuing fight, the IRS significantly reduced the scope of the summons to approximately 14,000 customers. Second, the quantity of customers data has been significantly reduced as the Court acknowledged the privacy rights at stake in this matter.