The US IRS is coming after customers from another crypto exchange
In a tax-related effort has US Internal Revenue Service (IRS) requests permission to look into the customers of crypto prime dealers SFOX Inc. and its partner.
The service responsible for collecting taxes is trying to do just that – collect taxes, but this time it is seeking to identify the platform’s crypto customers, presumably those who have yet to pay this mandatory contribution to state revenue, Bloomberg reported.
An attorney for the government was quoted as saying in court papers filed Monday in Los Angeles that,
“Cryptocurrency transactions have grown significantly in recent years, and the IRS is concerned that taxpayers are not properly reporting these transactions on their tax returns.”
Bloomberg cited court documents in New York and Los Angeles, where the IRS asked federal judges to allow subpoenas on SFOX, but also on MY Safra Bank – which partnered with the platform back in 2019 to enable it to offer its customers cash deposit accounts backed by Federal Deposit Insurance Corporation.
According to the report,
“The IRS is seeking account and transaction records for users with cryptocurrency transactions above [USD] 20,000 each year from 2016 to 2021.”
As reported last year, the United States has served similar subpoenas, called “John Doe” subpoenas, to seek user information from crypto exchanges Kraken and Coin baseand the USDC stablecoin issuer Circle.
In March of this year, as reported, the IRS was reportedly considering more John Doe subpoenas on crypto exchanges as it expands its scrutiny of digital assets.
The IRS has been targeting the crypto sector for some time now, with each move largely paving the way and setting precedents in this nascent industry.
Meanwhile, as reported, a case involving an alleged attempt to refund a couple’s tezos (XTZ) crypto staking tax bill could come to a head after one of the duo pushed for a “definitive ruling” that could change the way stakes are taxed in United States.
The IRS further stated that it believes the crypto and NFT space is fraught with “fraud”.
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Learn more:
– US court suggests IRS may have violated Coinbase user’s privacy rights in tax audit
– IRS Warning: The Taxman Is Coming – For “Billions Of Dollars” worth of Crypto.
– “Guys, file crypto taxes, the IRS is coming”
– Crypto tax trends in 2022: Increased reporting, updated rules and a wealth tax debate
– Going on the crypto tax in the USA
– Reports that the IRS will not tax rewards create legal confusion in the US; UK Taxman updates its own guidance
