James Harper’s case against the IRS raises questions about cryptocurrency users' rights to privacy in the U.S. The legal implications could redefine digital finance.
Background: IRS Targets Crypto Tax Evasion
The dispute began in 2016 when the IRS suspected widespread underreporting of cryptocurrency income. As part of its investigation, the agency issued a **court-approved summons** to Coinbase for information on high-volume users, including Harper.
Harper’s Argument: A Constitutional Overreach?
Harper contends that the IRS violated his **Fourth Amendment rights**, which protect U.S. citizens from unreasonable searches and seizures. His legal team argues that obtaining detailed financial data without individual suspicion constitutes **government overreach into personal digital finance**.
U.S. Government’s Response: No Privacy Over Third-Party Records
In a [recent filing](https://www.supremecourt.gov/DocketPDF/24/24-922/362058/20250530162526155_24-922_Harper_5.30.pdf), Solicitor General D. John Sauer stated that Harper voluntarily provided his data to Coinbase, thus **waiving any reasonable expectation of privacy**. The government cited **legal precedents** like U.S. v. Miller, which held that financial data held by third parties do not receive the same constitutional protections.
Harper's case raises fundamental questions about the privacy of financial records in the cryptocurrency age. With the Supreme Court yet to weigh in, the future of digital privacy remains uncertain.
