{"id":243282,"date":"2019-11-30T12:57:17","date_gmt":"2019-11-30T17:57:17","guid":{"rendered":"http:\/\/insidebitcoins.com\/?p=243282"},"modified":"2019-11-30T12:57:17","modified_gmt":"2019-11-30T17:57:17","slug":"william-zietzke-suffers-another-defeat-in-irs-inquiry-defense","status":"publish","type":"post","link":"https:\/\/insidebitcoins.com\/news\/william-zietzke-suffers-another-defeat-in-irs-inquiry-defense","title":{"rendered":"William Zietzke Suffers Another Defeat in IRS Inquiry Defense\u00a0"},"content":{"rendered":"<p><span data-preserver-spaces=\"true\">A federal judge in California has ruled that the Internal Revenue Service (IRS) is perfectly within its right to request user account information from cryptocurrency exchange Bitstamp.\u00a0<\/span><span data-preserver-spaces=\"true\">According to a\u00a0<\/span><a class=\"_e75a791d-denali-editor-page-rtfLink\" href=\"https:\/\/www.courtlistener.com\/recap\/gov.uscourts.wawd.276404\/gov.uscourts.wawd.276404.38.0_1.pdf\" target=\"_blank\" rel=\"noopener noreferrer\"><span data-preserver-spaces=\"true\">filing<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0published on November 25, the court expressed its belief that while the IRS did go overboard in its request, there was no evidence to prove that the tax authority had conducted any of its inquiries in bad faith.<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">A Filing Mistake Leads to a Surveillance Dispute<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">The filing is the latest in the save involving William Zietzke, an American cryptocurrency investor, and the IRS over his taxation records. Zietzke had filed a capital gains tax of $104,482 back in 2016, with the majority of his taxable transactions involving crypto assets.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">However, he later discovered that most of his transactions had occurred in 2017, and he corrected his filing with a revised capital gains tax of $410 for 2016, asking later for a refund of the difference.\u00a0<\/span><span data-preserver-spaces=\"true\">Suspecting foul play, the IRS audited his transactions, but were unable to get records on their own. So, they sent letters to several exchanges (including Butstamp and Coinbase) requesting for the details of his Bitcoin transactions and how much he had indeed engaged in taxable transfers.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">When he got wind of this, Zietzke immediately filed to stop the action, accusing the tax authority of stepping beyond its bounds and acting in bad faith. He also reckoned that the IRA has all it needed to audit his accounts \u2014 adding that the summons they sent to these colonies was a violation of his Fourth Amendment rights to reasonable privacy.\u00a0<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">Relevant Information Only\u00a0<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">Per the new filing, the investor had accused the IRS of administrative missteps, while also questioning the government\u2019s ability to ensure the security of his transaction records after they have been perused.\u00a0<\/span><span data-preserver-spaces=\"true\">Responding, the court claimed that the IRS has sought both relevant and irrelevant material, and had overstepped its bounds. However, Bitstamp will still have to comply with the summons nonetheless.\u00a0<\/span><\/p>\n<div class=\"su-quote su-quote-style-default\"><div class=\"su-quote-inner su-u-clearfix su-u-trim\">\u201cRelating to the Petitioner\u2019s Bitcoin sales before 2016\u2014even though such sales could not impact the gain or loss Petitioner realized if he sold Bitcoins in 2016. In this way, the summons requests information that is irrelevant to the IRS\u2019s stated purpose of auditing Petitioner\u2019s 2016 amended return,\u201d the release noted\u00a0<\/div><\/div>\n<p><span data-preserver-spaces=\"true\">This is the second defeat that Zietzke is facing at the hands of the IRS week, as Judge John Coughenour of the U.S. District Court for the Western District of Washington\u00a0<\/span><a class=\"_e75a791d-denali-editor-page-rtfLink\" href=\"https:\/\/www.scribd.com\/document\/437051538\/Order-Zietzke-Motion-to-Quash\" target=\"_blank\" rel=\"noopener noreferrer\"><span data-preserver-spaces=\"true\">announced<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0on Monday that the IRS is perfect toy within its rights to examine his cryptocurrency transactions.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Just like today\u2019s ruling, the District Court judge cautioned the IRS as well, stating that the tax authority should also narrow the scope of its inquiry before proceeding.\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<div class=\"fin-excerpt\">A federal judge in California has ruled that the Internal Revenue Service (IRS) is perfectly within its right to request user account information from cryptocurrency <a class=\"read-more-link\" href=\"https:\/\/insidebitcoins.com\/news\/william-zietzke-suffers-another-defeat-in-irs-inquiry-defense\" title=\"William Zietzke Suffers Another Defeat in IRS Inquiry Defense\u00a0\">[&#8230;]<\/a><\/div>","protected":false},"author":1770,"featured_media":242613,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[7596],"tags":[5493,5595,8572,8537],"class_list":["post-243282","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-bitstamp","tag-california","tag-irs","tag-tax"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.8 (Yoast SEO v23.8) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>William Zietzke Suffers Another Defeat in IRS Inquiry Defense\u00a0 - InsideBitcoins.com<\/title>\n<meta name=\"description\" content=\"A California judge has ruled that the IRS is perfectly within its right to request user account information from cryptocurrency exchange Bitstamp.\u00a0\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/243282\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"William Zietzke Suffers Another Defeat in IRS Inquiry Defense\u00a0\" \/>\n<meta property=\"og:description\" content=\"A California judge has ruled that the IRS is perfectly within its right to request user account information from cryptocurrency exchange Bitstamp.\u00a0\" \/>\n<meta property=\"og:site_name\" content=\"InsideBitcoins.com\" \/>\n<meta property=\"article:published_time\" content=\"2019-11-30T17:57:17+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/insidebitcoins.com\/wp-content\/uploads\/2019\/11\/IRS1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"3435\" \/>\n\t<meta property=\"og:image:height\" content=\"2576\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Jimmy Aki\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@adejimi\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Jimmy Aki\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/243282#article\",\"isPartOf\":{\"@id\":\"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/243282\"},\"author\":{\"name\":\"Jimmy Aki\",\"@id\":\"https:\/\/insidebitcoins.com\/#\/schema\/person\/a66ff7827d8bed054aa6be4e9d8c1dad\"},\"headline\":\"William Zietzke Suffers Another Defeat in IRS Inquiry Defense\u00a0\",\"datePublished\":\"2019-11-30T17:57:17+00:00\",\"dateModified\":\"2019-11-30T17:57:17+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/243282\"},\"wordCount\":466,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/insidebitcoins.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/243282#primaryimage\"},\"thumbnailUrl\":\"https:\/\/insidebitcoins.com\/wp-content\/uploads\/2019\/11\/IRS1.jpg\",\"keywords\":[\"Bitstamp\",\"california\",\"IRS\",\"Tax\"],\"articleSection\":[\"Breaking Crypto News\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/243282#respond\"]}],\"copyrightYear\":\"2019\",\"copyrightHolder\":{\"@id\":\"https:\/\/insidebitcoins.com\/#organization\"}},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/243282\",\"url\":\"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/243282\",\"name\":\"William Zietzke Suffers Another Defeat in IRS Inquiry Defense\u00a0 - InsideBitcoins.com\",\"isPartOf\":{\"@id\":\"https:\/\/insidebitcoins.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/243282#primaryimage\"},\"image\":{\"@id\":\"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/243282#primaryimage\"},\"thumbnailUrl\":\"https:\/\/insidebitcoins.com\/wp-content\/uploads\/2019\/11\/IRS1.jpg\",\"datePublished\":\"2019-11-30T17:57:17+00:00\",\"dateModified\":\"2019-11-30T17:57:17+00:00\",\"description\":\"A California judge has ruled that the IRS is perfectly within its right to request user account information from cryptocurrency exchange Bitstamp.\u00a0\",\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/243282\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/243282#primaryimage\",\"url\":\"https:\/\/insidebitcoins.com\/wp-content\/uploads\/2019\/11\/IRS1.jpg\",\"contentUrl\":\"https:\/\/insidebitcoins.com\/wp-content\/uploads\/2019\/11\/IRS1.jpg\",\"width\":3435,\"height\":2576,\"caption\":\"IRS Clarifies On Crypto Taxes; Users Seek Tax Software for Simplification\"},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/insidebitcoins.com\/#website\",\"url\":\"https:\/\/insidebitcoins.com\/\",\"name\":\"InsideBitcoins.com\",\"description\":\"Search &amp; Compare Brokers within Crypto, Forex &amp; Stocks\",\"publisher\":{\"@id\":\"https:\/\/insidebitcoins.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/insidebitcoins.com\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/insidebitcoins.com\/#organization\",\"name\":\"InsideBitcoins\",\"url\":\"https:\/\/insidebitcoins.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/insidebitcoins.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/insidebitcoins.com\/wp-content\/uploads\/2022\/07\/insidebitcoins.svg\",\"contentUrl\":\"https:\/\/insidebitcoins.com\/wp-content\/uploads\/2022\/07\/insidebitcoins.svg\",\"width\":195,\"height\":32,\"caption\":\"InsideBitcoins\"},\"image\":{\"@id\":\"https:\/\/insidebitcoins.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/insidebitcoins.com\/#\/schema\/person\/a66ff7827d8bed054aa6be4e9d8c1dad\",\"name\":\"Jimmy Aki\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/insidebitcoins.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/insidebitcoins.com\/wp-content\/uploads\/2024\/04\/avatar_user_1770_1713269729-96x96.png\",\"contentUrl\":\"https:\/\/insidebitcoins.com\/wp-content\/uploads\/2024\/04\/avatar_user_1770_1713269729-96x96.png\",\"caption\":\"Jimmy Aki\"},\"description\":\"Jimmy has been following the development of blockchain for several years, and he is optimistic about its potential to democratize the financial system. Jimmy's previously published work can be found on Business2Community, EconomyWatch, Learnbonds.com, Basketball Insiders, Buyshares.co.uk and a range of other leading media publications. Jimmy has also been investing in Bitcoin since 2018 and more recently in non-fungible tokens (NFTs) since their boom in 2021.\",\"sameAs\":[\"https:\/\/www.linkedin.com\/in\/jimiakinleye\/\",\"https:\/\/x.com\/adejimi\"],\"knowsAbout\":[\"Cryptocurrency\",\"Investment and Blockchain Development\"],\"jobTitle\":\"Editor\",\"url\":\"https:\/\/insidebitcoins.com\/author\/jimmyaki\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"William Zietzke Suffers Another Defeat in IRS Inquiry Defense\u00a0 - InsideBitcoins.com","description":"A California judge has ruled that the IRS is perfectly within its right to request user account information from cryptocurrency exchange Bitstamp.\u00a0","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/243282","og_locale":"en_US","og_type":"article","og_title":"William Zietzke Suffers Another Defeat in IRS Inquiry Defense\u00a0","og_description":"A California judge has ruled that the IRS is perfectly within its right to request user account information from cryptocurrency exchange Bitstamp.\u00a0","og_site_name":"InsideBitcoins.com","article_published_time":"2019-11-30T17:57:17+00:00","og_image":[{"width":3435,"height":2576,"url":"https:\/\/insidebitcoins.com\/wp-content\/uploads\/2019\/11\/IRS1.jpg","type":"image\/jpeg"}],"author":"Jimmy Aki","twitter_card":"summary_large_image","twitter_creator":"@adejimi","twitter_misc":{"Written by":"Jimmy Aki","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"NewsArticle","@id":"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/243282#article","isPartOf":{"@id":"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/243282"},"author":{"name":"Jimmy Aki","@id":"https:\/\/insidebitcoins.com\/#\/schema\/person\/a66ff7827d8bed054aa6be4e9d8c1dad"},"headline":"William Zietzke Suffers Another Defeat in IRS Inquiry Defense\u00a0","datePublished":"2019-11-30T17:57:17+00:00","dateModified":"2019-11-30T17:57:17+00:00","mainEntityOfPage":{"@id":"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/243282"},"wordCount":466,"commentCount":0,"publisher":{"@id":"https:\/\/insidebitcoins.com\/#organization"},"image":{"@id":"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/243282#primaryimage"},"thumbnailUrl":"https:\/\/insidebitcoins.com\/wp-content\/uploads\/2019\/11\/IRS1.jpg","keywords":["Bitstamp","california","IRS","Tax"],"articleSection":["Breaking Crypto News"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/243282#respond"]}],"copyrightYear":"2019","copyrightHolder":{"@id":"https:\/\/insidebitcoins.com\/#organization"}},{"@type":"WebPage","@id":"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/243282","url":"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/243282","name":"William Zietzke Suffers Another Defeat in IRS Inquiry Defense\u00a0 - InsideBitcoins.com","isPartOf":{"@id":"https:\/\/insidebitcoins.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/243282#primaryimage"},"image":{"@id":"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/243282#primaryimage"},"thumbnailUrl":"https:\/\/insidebitcoins.com\/wp-content\/uploads\/2019\/11\/IRS1.jpg","datePublished":"2019-11-30T17:57:17+00:00","dateModified":"2019-11-30T17:57:17+00:00","description":"A California judge has ruled that the IRS is perfectly within its right to request user account information from cryptocurrency exchange Bitstamp.\u00a0","inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/243282"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/243282#primaryimage","url":"https:\/\/insidebitcoins.com\/wp-content\/uploads\/2019\/11\/IRS1.jpg","contentUrl":"https:\/\/insidebitcoins.com\/wp-content\/uploads\/2019\/11\/IRS1.jpg","width":3435,"height":2576,"caption":"IRS Clarifies On Crypto Taxes; Users Seek Tax Software for Simplification"},{"@type":"WebSite","@id":"https:\/\/insidebitcoins.com\/#website","url":"https:\/\/insidebitcoins.com\/","name":"InsideBitcoins.com","description":"Search &amp; Compare Brokers within Crypto, Forex &amp; Stocks","publisher":{"@id":"https:\/\/insidebitcoins.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/insidebitcoins.com\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/insidebitcoins.com\/#organization","name":"InsideBitcoins","url":"https:\/\/insidebitcoins.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/insidebitcoins.com\/#\/schema\/logo\/image\/","url":"https:\/\/insidebitcoins.com\/wp-content\/uploads\/2022\/07\/insidebitcoins.svg","contentUrl":"https:\/\/insidebitcoins.com\/wp-content\/uploads\/2022\/07\/insidebitcoins.svg","width":195,"height":32,"caption":"InsideBitcoins"},"image":{"@id":"https:\/\/insidebitcoins.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/insidebitcoins.com\/#\/schema\/person\/a66ff7827d8bed054aa6be4e9d8c1dad","name":"Jimmy Aki","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/insidebitcoins.com\/#\/schema\/person\/image\/","url":"https:\/\/insidebitcoins.com\/wp-content\/uploads\/2024\/04\/avatar_user_1770_1713269729-96x96.png","contentUrl":"https:\/\/insidebitcoins.com\/wp-content\/uploads\/2024\/04\/avatar_user_1770_1713269729-96x96.png","caption":"Jimmy Aki"},"description":"Jimmy has been following the development of blockchain for several years, and he is optimistic about its potential to democratize the financial system. Jimmy's previously published work can be found on Business2Community, EconomyWatch, Learnbonds.com, Basketball Insiders, Buyshares.co.uk and a range of other leading media publications. Jimmy has also been investing in Bitcoin since 2018 and more recently in non-fungible tokens (NFTs) since their boom in 2021.","sameAs":["https:\/\/www.linkedin.com\/in\/jimiakinleye\/","https:\/\/x.com\/adejimi"],"knowsAbout":["Cryptocurrency","Investment and Blockchain Development"],"jobTitle":"Editor","url":"https:\/\/insidebitcoins.com\/author\/jimmyaki"}]}},"_links":{"self":[{"href":"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/243282"}],"collection":[{"href":"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/users\/1770"}],"replies":[{"embeddable":true,"href":"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/comments?post=243282"}],"version-history":[{"count":0,"href":"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/243282\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/media\/242613"}],"wp:attachment":[{"href":"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/media?parent=243282"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/categories?post=243282"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/tags?post=243282"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}