The IRS has received court authorization to issue a John Doe summons for records relating to investors who failed to pay taxes on cryptocurrency transactions. crypto bitcoin
The Internal Revenue Service has obtained a “court order authorizing summons for records relating to U.S. taxpayers who failed to report and pay taxes on cryptocurrency transactions.” The IRS commissioner commented: “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.”The U.S.
Specifically, the IRS summons seeks information about customers of SFOX, a cryptocurrency prime broker, who used banking services that M.Y. Safra Bank offered to SFOX customers engaged in cryptocurrency transactions. IRS investigations have identified at least 10 U.S. taxpayers who conducted crypto transactions on the SFOX platform but failed to report those transactions to the IRS as required by law. The tax authority explained that a John Doe summons is a summons that does not identify the person with respect to whose liability the summons is issued.