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Time Details
2025-07-07
21:01
Supreme Court Rejects Coinbase User Privacy Case, Upholding IRS Data Access for Crypto Traders

According to @DowdEdward, the U.S. Supreme Court has declined to review a case challenging the Internal Revenue Service's (IRS) authority to obtain user data from Coinbase, a decision with significant implications for cryptocurrency traders. The case stemmed from a 2016 "John Doe summons" where the IRS demanded records for thousands of Coinbase customers to identify potential tax evaders. The plaintiff, James Harper, argued this violated his Fourth Amendment rights, but lower courts consistently sided with the IRS, citing the agency's broad latitude to pursue unpaid taxes. The Supreme Court's denial solidifies the legal precedent, known as the third-party doctrine, which states that individuals have no reasonable expectation of privacy for information voluntarily shared with third parties like exchanges. For traders, this ruling confirms that their transaction data on platforms like Coinbase is accessible to the IRS, underscoring the critical importance of accurate tax reporting to avoid potential audits and penalties.

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