California Court rules the IRS regarding Bitstamp case

This week a California Federal Court said that the request made by the United States Internal Revenue Service (IRS) for a client’s private data to the Bitstamp encryption exchange is valid. This petition is directly related to an individual tax return case of a client named William Zietzke.

According to sources from the Cointelegraph news portal, it is known that five of the six arguments presented by Zietzke against IRS are exceeding their mandate by performing an audit on their tax returns.

Among the agency’s arguments against IRS it is known: “First, it issued the summons to Bitstamp in bad faith; second, that it seeks data that is irrelevant for its audit of the petitioner’s reports; third, who already has the information is looking for from Bitstamp”, according to Cointelegraph.

In three other arguments the agency alleges: “The IRS allegedly made administrative errors and, more importantly, has violated its reasonable expectation of privacy in Bitstamp records. He has also argued that the US government cannot guarantee the security of the records it receives from the crypto exchange.”

According to this, the California Court considers that “the citation is too broad because it seeks relevant and irrelevant material” and sentences the need for the IRS to request specific data with a temporary limitation.

K. Villarroel

Source: dailybitcoin