IRS Wins Access to Coinbase User Data
The U.S. Supreme Court has refused to review a case involving a Coinbase user. This decision allows the IRS to access user data from the crypto exchange.
James Harper, a Coinbase user, challenged the IRS’s request for user data. He argued that the IRS’s actions violated his Fourth Amendment rights. Though, the Supreme Court dismissed his appeal without comment. This means the IRS can now access data from over 14,000 Coinbase users.
Harper claimed the IRS’s data request was an invasion of privacy. The IRS sought information on users who might have underreported thier crypto income. The Court’s silence on the matter upholds previous rulings. The IRS can now legally obtain data from these users. The original summons was issued in 2016. It aimed to catch tax evaders in the crypto space.
Harper believed the IRS’s actions were unconstitutional. He argued that the IRS’s actions were unconstitutional. Though, the Supreme Court dismissed his appeal without comment. This means the IRS can now legally obtain data from these users. The original summons was issued in 2016. It aimed to catch tax evaders in the crypto space.
Harper believed the IRS’s data request was an invasion of privacy.The IRS sought information on users who might have underreported their crypto income. The Court’s silence on the matter upholds previous rulings. the IRS can now access data from more than 14,000 Coinbase users.
Harper appealed to the Supreme Court on the grounds that the IRS’s sweeping data demands violated his Fourth Amendment rights.Specifically, the 2016 summons sought data on all Coinbase users who might have misreported crypto income.
In a 2020 lawsuit, Harper claimed the request constituted an unreasonable search and seizure. Though, both the District and Appeals Courts ruled in favor of the IRS, citing the third-party doctrine. The courts argued that individuals have no reasonable expectation of privacy when voluntarily submitting data to third-party services.
With the Supreme Court declining to hear the case, Harper fatigued his final legal avenue. The outcome reaffirms the IRS’s authority to obtain user data from centralized crypto exchanges without needing individualized warrants.
The implications extend beyond crypto.Legal experts warn that the decision may further normalize broad surveillance powers across financial and tech platforms, setting a precedent for expansive government access to user data.
