IRS to Limit Probe into Coinbase User, US Court Advises

The U.S. Internal Revenue Service (IRS) could be made to restrict its crypto tax probe of Coinbase user William Zietzke to cover only 2016.

IRS Should Restrict Zietzke Crypto Tax Probe to 2016
According to Law360, U.S. Magistrate Judge Sallie Kim says the IRS should reduce the scope of its document request to Coinbase concerning one of its users — Zietzke. Delivering the court’s recommendation, Judge Kim stated:
The court finds that the requests for information are overbroad with respect to time, and the court recommends that the IRS propose an amended summons to limit the time frame of information sought to focus on the transactions at issue.
The document request is also part of the tax agency’s investigation into Zietzke after he reportedly reduced his 2016 crypto tax filing from $104,482 to $410.
Zietzke’s crypto tax filing…

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