IRS will gain access to Kraken customer data

by in Cryptocurrency News

Kraken

The US federal court ordered the Kraken cryptocurrency exchange to provide the IRS with information about users who made large transactions in 2016-2020.

According to a statement, 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 worth 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 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.

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“There is no excuse for taxpayers to 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.