The arguments are minconf, include_empty, and include_watchonly. If include_empty is true then watchonly addresses are returned as having a 0 balance even if they have a positive balance. Only when include_watchonly is also true do watchonly addresses with a balance return with their correct balance.
When include_empty is true and include_watchonly is false then the watchonly addresses should not be returned at all.
Example: $ ./bitcoin-cli listreceivedbyaddress 1 true [ { “address”: “watch only”, “account”: “”, “amount”: 0.00000000, “confirmations”: 0, “label”: “”, “txids”: [ ] }, { “address”: “address with privkey”, “account”: “”, “amount”: 0.00000000, “confirmations”: 0, “label”: “”, “txids”: [ ] } ]
$ ./bitcoin-cli listreceivedbyaddress 1 true true [ { “address”: “address with privkey”, “account”: “”, “amount”: 0.00000000, “confirmations”: 0, “label”: “”, “txids”: [ ] }, { “address”: “watch only”, “account”: “”, “amount”: 1.0000000, “confirmations”: 1234, “txids”: [ … ] } ]