But the IRS had this idea. Wouldn't it be nice to know who bought these packages, and we might want to check and see if they actually filed (and paid) their taxes? So they issued a subpoena to PayPal for the records. And they won at the District Court.
Mr. Schulz appealed to the 8th District Court of Appeals. As Joe Kristan reported today, the Appeals Court upheld the subpoena. Read his entire post; it's excellent. I'll just note one sentence from the Appeals Court ruling: "[W]e conclude that Schulz’s constitutional arguments challenging the IRS’s authority to enforce the tax laws are without merit."