Coinbase Client Sues IRS to Shield Crypto Transaction Records

A Coinbase Inc. client sued the federal government to block its request for records of his cryptocurrency transactions, arguing that the demands violated his right to privacy and skirted basic procedural requirements.

Several of the IRS’s information requests, including digital asset price history and correspondence with Coinbase, exceed the scope of determining the accuracy of Roger Metz’s 2022 tax return, the petitioner told the US District Court for the Northern District of California on Tuesday.

“Simply because the IRS wants information on Metz does not mean that it has a right to such information,” the petition said. “Metz has a legitimate, reasonable expectation of privacy to his usernames, addresses, communications including emails, logs, and customer support.”

The US Supreme Court is considering whether to review a separate IRS third-party summons against Coinbase, also seeking records of digital asset transactions from another taxpayer, James Harper. The cryptocurrency exchange urged the justices in that case to find that its clients held a reasonable expectation of privacy when using its trading platform.

Metz argued that he is entitled to that same privacy and that the government had acted in bad faith when making its requests.

“The IRS repeatedly refused to communicate with Metz as he sought to work with them to amend his 2022 tax return,” the petition said. “The IRS’s utter refusal to communicate with Metz and work with him to correct any potential issues, even after he has fully paid the monies owed, at minimum gives rise to an inference of bad faith.”

The IRS said it doesn’t comment on pending litigation.

Peretz & Associates represents Metz.

The case is Metz v. United States, N.D. Cal., No. 3:25-cv-04472, petition filed 5/27/25.