The Inland Revenue Service (IRS) seeks information from customers in the crypto enterprise circle. The IRS is a U.S. tax authority that wants to test whether U.S. residents are fulfilling their tax obligations.
Bitcoin and tax
According to a report by the Ministry of Justice, it will be called the Tax Monitoring Committee John Doe Summons To do. It is a term that refers to the investigation of taxpayers without a specific name. A kind of drag: mass surveillance in the hopes of a few tax evaders.
In a statement they openly mention stock market polonics. In 2018, the U.S. exchange acquired the US Dollar Currency (USDC) issuer circle.
The IRS is looking for information on US taxpayers who earned at least $ 20,000 worth of cryptocurrency transactions between 2016 and 2020. The IRS searches for data on Americans who have traded with or through a digital exchange circle. Headquartered in Boston. “
Therefore, John Doe Summons did not mention the name of a particular person at trial. This allows tax authorities to request information about a large number of citizens who have not yet been identified.
Through this move, tax authorities hope to find out the names of groups of investors or individuals who are violating tax laws.
Green light from the judge
Such an investigation should not be started as it is. This requires the approval of a federal judge. It has already happened: US Judge Richard G. Sterns gave the green light. He found that “there is a reasonable basis for believing that cryptocurrency users will not comply with federal tax laws,” according to a Justice Department report.
So hopefully the IRS is not to blame for the mistake. The move is specifically aimed at identifying citizens. As a result, Polonix should now provide information such as bitcoin transactions and customer identification.
Coinbase went through a similar case in 2016. This led to a lawsuit that lasted a year, before the exchange eventually provided information from thousands of customers.
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