The IRS has been authorized to begin serving a John Doe summons on cryptocurrency exchange Kraken and its subsidiaries in a bid to catch tax invaders.
May 6, 2021 | AtoZ Markets – The US federal court ordered the Kraken cryptocurrency exchange to provide the Internal Revenue Service (IRS) with information about users who made large transactions in 2016-2020.
According to the press release on Wednesday, the IRS has served Kraken with the so-called John Doe summons. The agency is interested in the data of clients who, during the specified period, made transactions in the amount of more than $ 20,000 per year.
The IRS suggests that some Kraken users have evaded taxes. The subpoena approved by the court will allow the department to obtain information about all the clients of the exchange included in the group of persons indicated in it.
The Office will also review whether the company is complying with its customer identification obligations.
“There is no excuse that taxpayers continue to hide cryptocurrency revenues. This agenda is part of our efforts to identify those who are trying to evade reporting and not paying fair tax,” said IRS Commissioner Chuck Retting.
On April 1, 2021, the IRS handed a similar agenda to the Circle blockchain company.
Coinbase was the first to hit the IRS. In 2016, the court allowed the department to gain access to the data of the exchange clients. The company tried to appeal the decision, but only achieved a softening of the requirements.
Recall that Kraken is preparing to become a public company in 2022. According to its CEO Jesse Powell, the exchange uses a direct listing procedure.
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