The US Internal Revenue Service claims that the investigation of Coinbase customers is legal and refutes the "IRS surveillance conspiracy" it fabricated.

According to Cointelegraph, the US Internal Revenue Service (IRS) argued in a recent document that its investigation of Coinbase customer William Zietzke was completely legal. Zietzke is attempting to apply to revoke the subpoena issued by IRS to Coinbase Inc. in June, which requires Coinbase to hand over the financial records associated with his 2016 filing. The US Internal Revenue Service also refutes Ziettzke’s allegations. Zietzke previously hinted that tax authorities are developing databases so they can track anyone who has a virtual currency account. The US Internal Revenue Service said, "Mr. Zietzke didn't want the IRS to get the information he needed from Coinbase, but invented the IRS surveillance conspiracy…"