The US Internal Revenue Service (IRS) has appealed against Rowland Marcus’ claims on invalid summonses issued to his company ABTC Corp.
Financial Misconduct Allegations
The dispute began when the IRS opened an investigation against ABTC Corp in 2021 for potential financial reporting violations under the Bank Secrecy Act. In its latest brief, the tax agency insists it complied with all legal requirements when issuing summonses to the crypto company founder.
Right to Financial Privacy
In May 2023, the IRS issued summonses to JPMorgan Chase and Bank of America requesting financial records pertaining to Rowland Marcus and his firm. However, Andrade argues that the IRS violated his financial privacy rights by not providing sufficient notice before obtaining his records. Andrade’s attorney requested copies independently after learning of the summonses.
Long Winding Legal Battle
In September 2023, the IRS reissued the summonses and directed notifications to Rowland Marcus’s business address, yet the notices were returned undelivered. Later, in February 2024, the crypto company founder filed a legal suit in Texas, claiming the IRS summonses violated his financial privacy rights. However, the District Court ruled against Andrade in May 2024, stating that the IRS complied with RFPA requirements as the necessary financial records were already provided by the banks.
The case in the Fifth Circuit Court remains to be decided, determining whether to uphold the District Court’s ruling or accept Rowland Marcus’ appeal.
