A federal judge implicitly indicated that an individual may not have the right to demand that the IRS or IRS write off accounts received from a cryptocurrency exchange.

In granting the waiver filed in December, New Hampshire County Judge Joseph Diklericu suggested that the IRS is not obligated to comply with requests to remove cryptocurrency transaction records received from Coinbase or other federal tax information exchanges. Civil rights lawsuit filed by plaintiff James Harper against IRS Commissioner Charles Rettig, the agency and his staff after nearly a year in court, after being dismissed in part due to lack of jurisdiction.

Today’s chapter states that Harper is not authorized to claim compensation or limit the tax authority’s ability to obtain tax information from stock exchanges, mainly due to the Anti – Penal Code. The law applies only to federal taxes and prohibits federal courts from exercising jurisdiction in certain cases to prevent “taxation or collection of taxes.”

“The effect of the declaratory waiver and injunction requested by Harper is to prevent the IRS from assessing Harper’s fees or the fees of others using information obtained through John Does’ third-party process,” Judge Declerico said. Consequently, his claim to the extent that you need a restraining order and clarification is prohibited in the Warning Act.

Harper has had a Coinbase account since 2013, when he first received Bitcoin (BTC) deposits as income for his consulting business. He claims to have announced cryptocurrency capital gains transactions on the tax return until 2016, when he liquidated and transferred all assets from the stock exchange, as well as any BTC to Abra and Uphold.

The IRS sent out 10,000 emails to cryptocurrency investors explaining tax return requirements for digital assets and apparently getting them to pay undisclosed taxes. The message contained a veiled threat that cryptocurrency users “will be subject to future civil and criminal law enforcement actions” if they do not advertise and pay property taxes properly.

Harper has reportedly not stored cryptocurrency on Coinbase since 2016, and the exchange said in the terms of the agreement that it will protect users’ personal information against “loss, misuse, unauthorized access, disclosure, alteration and destruction.” However, after receiving a letter from the IRS, Harper concluded that either Abra or Coinbase – or both – provided the agency with his personal information. In July 2020, he filed a civil lawsuit against the IRS, claiming that the tax authorities violated his rights in the fourth and fifth amendments.

The court documents referred to a federal case against Coinbase in 2017, which stated that a tax authority’s receipt of personal financial information from a stock exchange was classified as “tax compliance, not research”, which serves the legitimate purpose of a tax compliance investigation against those who earn from trading. In virtual currency. This decision, in addition to the current decision, may indicate that cryptocurrency users have no means in the event that a switchboard like Coinbase releases their personal information in response to a subpoena or information request from the IRS.

The judge’s decision is made just three weeks before the April 15 tax return deadline.

Source: CoinTelegraph

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