Congress questions IRS Regarding Coinbase

Members of Congress have sent a letter to the IRS questioning whether they have a strong foundation for amassing the records of a half a million people.

The letter from members of Congress is regarding an ongoing dispute between Coinbase, a digital wallet provider, and the IRS.  The IRS has demanded that Coinbase turn over the information for all of its user’s accounts.

Echoing concerns from Coinbase and its users, the letter questions whether the IRS has ‘established a reasonable basis to support the mass production of records for half a million people,’ many of which don’t appear to be undertaking the volume of transactions that requires it necessary to report to the IRS.

With several questions put to the IRS, members of Congress have asked the federal agency to get back by June 7. This will no doubt put increased pressure on the agency as it works to deal with Coinbase in an attempt to get the information it wants.