In February, early Bitcoin investor Roger Ver, also known as "Bitcoin Jesus," urged a U.S. judge to dismiss prosecutors' charges of tax evasion for selling millions of dollars of Bitcoin, calling the case unconstitutional.
On December 3, Ver filed a document in a California federal court, saying that the IRS's exit tax on those who choose to renounce their U.S. citizenship and have assets exceeding $2 million is unconstitutional and "vague."
"The controversial 'exit tax' violates the apportionment clause and due process clause of the Constitution... The charges also rely on provisions of the U.S. tax law that are vague at all relevant times and cannot be applied to the digital assets that constitute the charges," Ver argued.
It is reported that the IRS's exit tax is intended to ensure that U.S. citizens pay all necessary taxes before they renounce their citizenship and exit the country's tax system. (Cointelegraph)
Earlier in May, Roger Ver was accused by the Department of Justice of mail fraud, tax evasion and filing false tax returns, and was arrested in Spain on U.S. criminal charges. The United States will seek to extradite Roger Ver to the United States for trial.
Roger Ver renounced his U.S. citizenship on February 4, 2014. After moving abroad, U.S. law required Roger Ver to file a tax return to report the capital gains from the sale of his assets worldwide (including Bitcoin), and he was required to pay taxes on these capital gains. The Department of Justice believes that Roger Ver has caused the IRS a total loss of at least $48 million.