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American Banker reports on a potential privacy threat to users of digital currency exchange platform Coinbase:
Under a procedure called a John Doe summons, the IRS this month asked a federal court in California to approve its request for Coinbase to turn over records on any user who had made digital currency transactions between 2013 and 2015.
At issue is the indiscriminate nature of the request. Coinbase has accumulated nearly 5 million users, according to its website – which could mean the company might be forced to turn over financial records on millions of U.S. taxpayers.
In the past, the IRS had targeted a number of banks with John Doe summonses. The requests were broad, but did not ask financial institutions to turn over information on every single one of their accountholders as the IRS is now demanding Coinbase do, industry lawyers said.
(Score: 4, Interesting) by bradley13 on Wednesday November 30 2016, @06:49AM
I thought there was this thing in the USA that required a warrant, in order to search your "papers" (papers which are, today, electronic). So here's a question for you Americans - challenge your assumptions of the way things are, and think about how they should be:
--> Why does the IRS have *any* financial information on people, unless it has some evidence that they are cheating on their taxes?
This issuing of a John Doe warrant is bad enough, but why do they already know your bank balance, your salary, and basically every other financial detail of your lives? It can work differently. Here, in Switzerland, the government has no more information than anyone else, unless they want to open a case of tax evasion. Our banks were forced to give up this privacy for international customers, largely because of pressure from the USA.
Everyone is somebody else's weirdo.
(Score: 0) by Anonymous Coward on Wednesday November 30 2016, @07:06AM
An easier approach would be to change the methods of taxation (land tax, consumption tax, etc.) and allow people to maintain their privacy and still give the government their pound of flesh.
(Score: 1, Insightful) by Anonymous Coward on Wednesday November 30 2016, @07:10AM
Because without the ability to violate people's privacy at will, tax collection would be harder. As we all know, our rights vanish to make everything more convenient for the government; that's how the constitution works. I suggest we do away with warrants entirely, as they make law enforcement's job more inconvenient, and that means some bad guys could get away sometimes.
(Score: 5, Interesting) by davester666 on Wednesday November 30 2016, @07:43AM
Nope, what you are talking about is for the gov't to search your personal property, such as your home, or a briefcase you are carrying.
The IRS is going after something called business records, which could be turned over to the gov't without a warrant if the company wants to. If Coinbase was actually legally a bank, they probably would have more legal protections, but also more regulations to follow, so they likely aren't (like Paypal isn't).
(Score: 0, Disagree) by Anonymous Coward on Wednesday November 30 2016, @11:05AM
The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no Warrants shall issue, but upon probable cause, supported by Oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized.
(Score: 3, Interesting) by DannyB on Wednesday November 30 2016, @03:22PM
The government wants to know everything about your life, business and finances. For purposes other than taxation.
Giving the IRS the power it already has plus newly wanted additional powers is really for purposes other than taxation. But the IRS and the taxation provide the plausible sounding cover for the government's desired invasion into our lives.
The lower I set my standards the more accomplishments I have.