US IRS May Send Summonses To Bank That Serves Customers Of The Crypto Broker SFOX In An Effort To Find Tax Evaders
A New York judge ruled on Thursday that the Internal Revenue Service (IRS) can issue a “John Doe” summons to a bank that offered services to clients of cryptocurrency prime broker SFOX. The decision will enable the tax authority to carry out its continuing investigation in search of potential tax evaders.
According to the summons, M.Y. Safra Bank is required to submit details regarding SFOX customers who might not have reported and paid taxes on cryptocurrency transactions. A Californian judge granted the IRS permission to serve SFOX with a “John Doe” summons in August.
“The government’s ability to obtain third-party information on those failing to report their gains from digital assets remains a critical tool in catching tax cheats,” IRS Commissioner Charles P. Rettig said in a U.S. Department of Justice (DOJ) press release.
“The court’s granting of the John Doe summons reinforces our ongoing, significant efforts to ensure that everyone pays their fair share.”
M.Y. Safra Bank is not alleged to have engaged in wrongdoing, the DOJ release said.
IRS has previously served such summons’s on companies like Kraken and Circle
IRS typically does so when it wants to confirm whether the recipient’s customers are properly reporting their taxes. Cryptocurrency transactions are taxed like property, with the IRS collecting capital gains tax on every transaction.
The California judge’s ruling authorized the IRS to serve a summons against SFOX, asking for information about any “U.S. taxpayers who conducted at least the equivalent of $20,000 in transactions in cryptocurrency between 2016 and 2021 with or through SFOX”. SFOX will be required to share any records identifying those users and their transactions through the service.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Annie
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US IRS May Send Summonses To Bank That Serves Customers Of The Crypto Broker SFOX In An Effort To Find Tax Evaders
A New York judge ruled on Thursday that the Internal Revenue Service (IRS) can issue a “John Doe” summons to a bank that offered services to clients of cryptocurrency prime broker SFOX. The decision will enable the tax authority to carry out its continuing investigation in search of potential tax evaders.
According to the summons, M.Y. Safra Bank is required to submit details regarding SFOX customers who might not have reported and paid taxes on cryptocurrency transactions. A Californian judge granted the IRS permission to serve SFOX with a “John Doe” summons in August.
“The government’s ability to obtain third-party information on those failing to report their gains from digital assets remains a critical tool in catching tax cheats,” IRS Commissioner Charles P. Rettig said in a U.S. Department of Justice (DOJ) press release.
“The court’s granting of the John Doe summons reinforces our ongoing, significant efforts to ensure that everyone pays their fair share.”
M.Y. Safra Bank is not alleged to have engaged in wrongdoing, the DOJ release said.
IRS has previously served such summons’s on companies like Kraken and Circle
IRS typically does so when it wants to confirm whether the recipient’s customers are properly reporting their taxes. Cryptocurrency transactions are taxed like property, with the IRS collecting capital gains tax on every transaction.
The California judge’s ruling authorized the IRS to serve a summons against SFOX, asking for information about any “U.S. taxpayers who conducted at least the equivalent of $20,000 in transactions in cryptocurrency between 2016 and 2021 with or through SFOX”. SFOX will be required to share any records identifying those users and their transactions through the service.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Annie
CoinCu News
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