The US tax regulator IRS (Internal Revenue Services) will access the details about crypto exchanges above $20,000 that took place on the Circle platform from 2016 to 2020.published the decision on April 1. IRS's request to employ John Doe Summons to reach the data was approved.
This summons is a unique type of official notice that goes not to individuals but groups.In the announcement, Judge Richard Stearns mentions there is a possibility of cryptocurrency users having failed to act according to federal tax laws.
As stated in the paper, IRS doesn't claim that Circle has violated any rules regarding digital currency exchange. The decision aims to identify a group or class of people that the IRS believes may have avoided taxes.
Circle is a Massachusetts-based fintech company that applies stablecoins and public blockchains for financial operations. The platform has its crypto payments app, Circle Pay.