With the recent controversy involving the Internal Revenue Service (IRS) and Coinbase, the federal government responded strongly that is opposing the ongoing lawsuit at the courthouse.
Coinbase is the company responsible in facilitating currency transactions online such as those from Ehereum and Bitcoin.
The federal government responded strongly about the controversy that involves the IRS as well as Coinbase a couple of weeks ago, according to the reported news through forbes.com. It presented its answers to the filed Amicus Curiae (Friends of the court) briefs by the Coin Center, Competitive Enterprise Institute (CEI) and Digital Currency & Ledger Defense Coalition (DCLDC).
The federal government likewise gave it opposing respond to the filed lawsuit by John Doe 4 and Coinbase, the news added.
Based on the information online, there are certain parties from Coinbase who filed as intervenor or someone whom they did not mention his/her name specifically in the original summons, but need to take part of the process. This is the kind of Amicus Curiae filed in the courthouse, which the government responded with strong opposing answers about the issue.
For the Coin Center, it is actually presenting itself an “independent, non-profit research center focused on the public policy issues facing digital currency technologies such as Bitcoin and others.,” as quoted by the news report. It is also explained that the experts of the company already attended the hearing of the Congress and testified about the issues and its collaboration with the Congressional Blockchain Caucus, which intend to educate the members regarding the online currency and blockchain technologies evolution.
Based on the report of forbes.com as quoted online, the CEI considered itself being a “a public interest organization dedicated to protecting limited government and individual liberty.” The company likewise noted that it never has a direct interest in the lawsuit but rather “has extensive experience with the subjects addressed in their amicus curiae brief – such as the role of virtual currencies, the privacy and property implications of broad government data demands in the information age, and the use and misuse of government subpoenas.”
Regarding the involvement of DCLDC, it is presenting itself as a group “that protects individual constitutional rights and civil liberties as they relate to digital currency (e.g., bitcoin) and its related blockchain technology.,” as quoted by Forbes.
The filed lawsuit already existed since last year and IRS is willing to prove matters against the involved companies on the case.
Like the reported news last January, Coinbase made a decision to file a case that support the challenge to the demand of the IRS about the startup turn over information from millions of account users.
According to the report of fortune.com in January, the tax agency suspected about the popular bitcoin exchange company wherein it include taxpayers from the United States that do not follow with the existing law.
Coinbase however filed a lawsuit after learning about a client who sued IRS and claimed that the tax agency is demanding broadly and sweeping many clients even if these people are not doing anything unlawful.
“If the IRS were to approach Citibank, Fidelity, or Paypal and ask them to turn over all customer records, they would rightfully push back. And I feel we have the same obligation to do so,” Brian Armstrong wrote from a blog post after they file the case that time as detailed by fortune.com.
From the observation of Armstrong also, the lawsuit battle against IRS may forced them to spend almost $100,000 up to $1 million and think that it is more helpful to utilize such amount in hiring new workers and creating more products. He added that the tax agency is not acting fairly considering that Coinbase already followed the different subpoenas from the IRS and even created the right system to make sure their clients known their obligations in terms of paying their right taxes.
Armstrong is the Chief Executive Officer (CEO) of Coinbase.