US Court Allows IRS to Subpoena Crypto Investors’ Records – TaxBitcoin News

The Internal Revenue Service (IRS) has obtained a “court order authorizing the production of records of US taxpayers who failed to report and pay taxes on cryptocurrency transactions.” The IRS Commissioner commented: “The ability to obtain third-party information on the government’s failure to report profits from digital assets will continue to be a critical tool in catching tax evasion.

The IRS wants the records of crypto investors from the bank

The United States Department of Justice (DOJ) announced Thursday that the Internal Revenue Service (IRS) has obtained a “subpoena for records of US taxpayers who failed to report and pay taxes on cryptocurrency transactions.”

U.S. District Judge Paul G. Gardiffe entered an order on Sept. 22 authorizing the IRS to issue a John Doe subpoena against MY Safra Bank for failing to report U.S. taxpayers to the IRS and requiring it to pay taxes. On, Cryptocurrency Transactions,” the DOJ detailed:

Specifically, the IRS subpoena seeks information about SFOX’s prime broker that SFOX’s customers used banking services it provided to SFOX’s customers engaged in secret transactions.

SFOX in 2010 It is a cryptocurrency distributor and trading platform with more than 175,000 users who have transferred more than $12 billion worth of cryptocurrencies since 2015, according to the DOJ.

IRS investigations have identified at least 10 US taxpayers who made crypto transactions on the SFOX platform but failed to report those transactions to the IRS as required by law. The IRS explained that the John Doe subpoena is a subpoena that does not identify the person liable for the subpoena.

Taxpayers must report any gains and losses related to cryptocurrency transactions on their tax returns. However, the IRS said that “experience has revealed significant tax compliance deficiencies related to cryptocurrencies and other digital assets.”

IRS Commissioner Charles P. Rettig emphasized:

The ability to obtain third-party information on non-reporting of profits from digital assets is a critical tool for catching tax evasion.

U.S. Attorney Damian Williams commented: “The government is committed to using all tools, including John Doe subpoenas, to identify taxpayers who fail to report their cryptocurrency transfers and ensure that everyone pays their dues.” share”

What do you think about the IRS issuing John Doe subpoenas for crypto investors’ records? Let us know in the comments section below.

Kevin Helms

Kevin, an Austrian economics student, discovered Bitcoin in 2011 and has been an evangelist ever since. His interests are in Bitcoin security, open source systems, network effects and the intersection between economics and cryptography.

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