US Judge Denies Customer’s Plea to Quash IRS Bitstamp Inquiry

A Washington Western District Court judge has rejected petitioner William Zietzke’s appeal to stop the U.S. Internal Revenue Service (IRS) from accessing his Bitstamp trade data. An IRS summons invoked Zietzke to file a petition to quash the tax agency’s investigation into his private accounts. Even though the presiding Judge John Coughenour believes the IRS summons is “overbroad,” he still denied Zietzke’s petition.

Also read: IRS Dispels Crypto Tax Confusion

Washington Judge Will Allow IRS to Summons Bitstamp Over a Customer’s Transactions in 2016

William Zietzke filed a motion to quash an IRS summons on June 27, 2019, and the Washington case was then in limbo up until November 25. Court filings detail that in 2016, Zietzke used the platform Turbo Tax and said he thought he made two major transactions by filing a capital gain for more than $100K. After the tax filing, he realized he made a mistake and amended the return. Only this time…