In an order, U.S. Magistrate Judge Jacqueline Scott Corley said Coinbase must provide the taxpayer ID, name, date of birth and address for the accounts, but not copies of passports, driver's licenses, wallet addresses and public keys for accounts because they were not relevant for investigating tax delinquency among account holders.

"The summons as narrowed by the court serves the IRS' legitimate purpose of investigating Coinbase account holders who may not have paid federal taxes on their virtual currency profits," Judge Corley said.

The opinion said the government met its minimal burden to show the narrowed summons serves a legitimate purpose to investigate "the reporting gap between the number of virtual currency users Coinbase claims to have had during the summons period" and "U.S. bitcoin users reporting gains or losses to the IRS during the summoned years." But other requests were not relevant to achieve the government's purpose, Judge Corley said.

As such, the judge denied the petition to enforce documents seeking know-your-customer diligence; agreements or instructions granting a third-party access, control or transaction approval authority; and certain correspondence between Coinbase and the user or any third party with access to the account.

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