Coinbase has won a partial victory in their ongoing legal battle with the IRS concerning the disclosure of personal consumer information. In accordance with Coinbase, the authorities formerly sought documents on over 500,000 users in their attempts to catch tax cheats. After months of legal power struggle, Coinbase declared that the IRS has decreased their records request to just 14,000 consumers, a 97 percent reduction.
Coinbase also declared that the amount of documentation requested by the IRS was significantly reduced. The company’s blog article didn’t disclose the criteria utilized to find out that the 14,000 “high volume” clients the IRS is considering. Nor did Coinbase disclose the degree of the documentation which the tax service is currently looking for.
According to Coinbase, many firms simply hand info over to the IRS, however, they wanted to keep users privacy:
“Coinbase began this procedure more than 12 months before, and while the outcome isn’t the complete success we hoped for, it will represent a significant and unprecedented success for the business and the thousands of consumers that have been unfairly targeted in case it was not for our activity. Although we are disappointed and were not able to completely defeat the summons, we’re proud to fight back for our clients and consequently, we could reach as a small company against a huge government agency.”
The business promised that, if they are asked to submit the requested information about the last 14,000 users, they would have notified them before the correct disclosure happens. The organization’s legal team is presently assessing the arrangement prior to proceeding.