A United States federal judge has<a href="https://www.scribd.com/document/437051538/Order-Zietzke-Motion-to-Quash" target="_blank" rel="noopener"> allowed</a> the Internal Revenue Service (IRS) to view Bitstamp’s customer information. However, the agency was ordered to limit the number of requests made.

As days go, IRS involvement in the cryptocurrency business keeps increasing. A Washington resident even went to the extent of filing a request to stop the IRS from accessing Bitsatamp’s user's information. Same as the coin base case, a taxpayer refused to share data and went on to file a lawsuit to stop it. However, in a similar case scenario, the IRS won partly and lost parts.

Moreover, the Luxembourg-based crypto exchange runs an office in the United States but outside of New York. However, the company describes itself as a “European Based Cryptocurrency marketplace”. The marketplace allows people from all over the globe to buy and sell digital currencies such as Bitcoin, Ethereum, Litecoin, Bitcoin Cash and Ripple’s XRP.
<h2>Zietzke Vs IRS</h2>
Moving forward, the Washington resident in question is William Zietzke. He presented two arguments to the Washington County District <a href="https://www.cryptoknowmics.com/crypto/coinbase-faces-lawsuit-over-negligence-in-bitcoin-cash-launch/" target="_blank" rel="noopener">Court</a>. The first one was that crypto users have a constitutional right to financial integrity; and the second argument, third parties (such as the IRS) should not be trusted with protecting the private data of exchanges’ users.

According to court documents, William Zietzke prepared his 2016 tax return through Turbo Tax himself. He reported a long-term capital gains of $104,482 in 2016. However, Zietzke eventually hired a Certified Public Accountant (CPA) to amend his returns. The new amendment reduced the capital gains in 2016 from $104,482 to $410.  He realized the the crypto transactions that earned him the highest returns did not take place in 2016. As a result, Zietzke is now demanding a $15,475 refund. 

As a result of the refund request, the IRS demands information from Bitstamp. Zietzke claims that the tax agency already has the required information and it didn’t take the right administrative steps as the law requires.

In conclusion, the judge agreed to IRS request and described it as ambitious. He also stated that crypto transactions have tax consequences. IRS cryptocurrency concerns are here to stay 

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IRS Allowed to View Bitstamp Customer Information by U.S. Court

A United States federal judge has allowed the Internal Revenue Service (IRS) to view Bitstamp’s customer information. However, the agency was...%

My first love is music – then goes writing. I don’t write fiction, I analyze bulls and bears in markets. I call it my jungle, the digital jungle of crypto and chains.

IRS Allowed to View Bitstamp Customer Information by U.S. Court

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