- The court found a number of the claims in the lawsuit weren’t ready for a decision
- The sender's name, date of birth, and Social Security number must be reported
The lawsuit, filed by the pro-crypto organization Coin Center, was thrown out on jurisdictional grounds.
On Wednesday, a US federal court tossed a series of constitutional challenge to the latest crypto reporting requirement for businesses and individuals – namely to report crypto transactions in excess of $10,000.
Lack of jurisdiction
The lawsuit was dismissed by the US District Court for the Eastern District of Kentucky due to lack of jurisdiction,finding that a number of the claims weren’t ready for a decision, Bloomberg reported.
Coin Center, a nonprofit crypto advocacy organization, filed a lawsuit in the district court against the IRS and the Treasury Department in June last year. They claimed the crypto reporting requirement was unconstitutional in a post on their website.
The lawsuit stated:
In 2021, President Biden and Congress amended a little-known tax reporting mandate. If the amendment is allowed to go into effect, it will impose a mass surveillance regime on ordinary Americans.
The amendment in question would require businesses and individuals who get crypto transfers of $10,000 or more to report a series of details about the sender. These include their name, date of birth, and even SSN. The amendment is from the Infrastructure Investment and Jobs Act, passed in 2021.
It further claimed:
This would help uncover a detailed picture of a person’s personal activities, including intimate and expressive activities far beyond the immediate scope of the mandate. The reports would give the government an unprecedented level of detail about transactions within a realm where users have taken a series of steps to protect their transactional privacy.
The advocacy group added its goal was to protect people’s rights to develop and use open and free cryptocurrency networks and the right to read, write, and execute code. In addition, they wish to defend the right to form peer-to-peer networks in the name of privacy.
