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: 2) by Thexalon on Thursday December 01 2016, @04:16AM
Why, indeed I do:
Article 1, Section 2: "Representatives and direct Taxes shall be apportioned among the several States which may be included within this Union"
Article 1, Section 8: "The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States;"
Amendment 16: "The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration."
This isn't really surprising: The inability of the federal government to tax was one of the major problems that led to the creation of the Constitution to replace the Articles of Confederation.
The only thing that stops a bad guy with a compiler is a good guy with a compiler.
(Score: 0) by Anonymous Coward on Thursday December 01 2016, @05:05AM
That's nice. Then I should expect to receive prompt payment of 10% of your net production soon, eh?