US court dismisses Coinbase user's lawsuit to block IRS data summons

A U.S. court in California has dismissed a lawsuit from a Coinbase user who sought to prevent the exchange from sharing financial records with the Internal Revenue Service (IRS), Cointelegraph reported. The user had sued the IRS to invalidate a summons ordering Coinbase to turn over their financial records for a tax audit related to their 2022 federal tax return. However, the court dismissed the case, ruling that the user failed to comply with federal civil procedure rules requiring them to notify the government agency of the petition within 90 days of filing.