A cryptocurrency user’s lawsuit alleging that the government violated his constitutional rights when it seized his records can be heard in court because it isn’t barred by the Anti-Injunction Act, the First Circuit ruled.
James Harper, who maintained bitcoin holdings in digital currency exchange Coinbase, filed suit against the IRS in 2020 after the agency requested further information about his crypto dealings, following the IRS’s third party or “John Doe” summons on Coinbase in 2016 for records, under tax code Section 7609(f).
The summons reflects the agency’s push to crack down on potential cryptocurrency tax evasion.
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