cryptoknowmics.com
|
|
The US District Court of California has authorized the IRS to fetch details of the Kraken platform’s user identities of the taxpayers who are using the services of the well-known cryptocurrency exchange.
IRS Can Now Fetch Details of Taxpayers Identities from Kraken
The government agency seems to be more interested in users with a total transaction volume of more than $20,000, over four year period time, i.e. from 2016 to 2020.
IRS Commissioner Chuck Rettig claims,
“The summons is necessary to uncover those who are refusing to pay their fair share. There is no excuse for taxpayers continuing to fail to report the income earned and taxes due from virtual currency transactions.”
Internal Revenue Services Can Now Send John Doe Summons
Back in 2017, the Internal Revenue Service IRS had scored a big court victory over Coinbase. The largest U.S. cryptocurrency exchange, Coinbase, allows the IRS to investigate the company users who may be tax dodgers. The ruling authority has carved the way for the most recent summonses.
Talking about the measures taken in 2019, the U.S. government sent warning letters to more than 10,000 cryptocurrency holders.
Assistant Attorney General David Hubbert of the Justice Department’s Tax Division mentioned in the statement
“Gathering the information in the summons approved today is an important step to ensure cryptocurrency owners are following the tax laws, those who transact with cryptocurrency must meet their tax obligations like any other taxpayer.”
IRS Commissioner Chuck Rettig added,
“There is no excuse for taxpayers continuing to fail to report the income earned and taxes due from virtual currency transactions. This John Doe summons is part of our effort to uncover those who are trying to skirt reporting and avoid paying their fair share.”
For sure The taxman is coming for the users of cryptocurrency exchange Kraken.