IRS asks court to dismiss Coinbase customer’s motion to block investigation

Crime | December 30, 2016 By:

The Internal Revenue Service (IRS) is seeking to dismiss the filing by Coinbase customer Jeffrey K. Berns, which sought to block the IRS from accessing personal and transactional information of individuals who used the Coinbase’s platform during 2013-2015.

Filed in the US District Court of Northern California (which oversees the city of San Francisco where Coinbase is headquartered), the new documents request the filing be dismissed on the grounds that the request was only for unidentified users of Coinbase.

The IRS states that Berns, as a Coinbase user, is not subject to the summons. In other words, the aim of the IRS is to get access to the information “revealing the identity of certain unknown taxpayers”.

The IRS withdrew the summons concerning Berns (while only him). Coinbase is notified that the agency will not seek any records related to Berns. These measures mean that the matter as it affects Berns has been resolved making his motion moot. Now, the IRS is planning to continue issuing the “John Doe” summons on Coinbase customers.