fbpx
QQQ
+ 0.89
339.46
+ 0.26%
DIA
+ 0.07
344.91
+ 0.02%
SPY
+ 0.75
422.86
+ 0.18%
TLT
-0.23
142.77
-0.16%
GLD
-2.04
179.78
-1.15%

Crypto Exchange Kraken To Provide User Records To IRS As Per New Court Order

May 6, 2021 8:18 am
Share to Linkedin Share to Twitter Share to Facebook Share to Print License More
Crypto Exchange Kraken To Provide User Records To IRS As Per New Court Order

The U.S.-based crypto exchange Kraken will now be obliged to provide the Internal Revenue Service (IRS) with details about its users engaged in cryptocurrency transactions equivalent to $20,000.

What Happened: A court order ruled that the IRS was authorized to serve a John Doe Summons on Kraken, seeking information about users engaged in crypto transactions in any year between 2016 and 2020.

“Those who transact with cryptocurrency must meet their tax obligations like any other taxpayer,” said Acting Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division.

IRS Commissioner Chuck Rettig also weighed in, saying, “There is no excuse for taxpayers continuing to fail to report the income earned and taxes due from virtual currency transactions.”

Rettig explained that this John Doe summons is part of the IRS’s efforts to uncover those who skirt reporting the entirety of their taxable income.

Why It Matters: A John Doe Summons is used by the IRS to get the names and information about all taxpayers from a specified description – in this case, that transacted for over $20,000.

Kraken isn’t the only crypto company to be subject to an order of this nature.

Coinbase Global Inc (NASDAQ:COIN) was first served with a John Doe Summons in 2016, which led to the IRS obtaining information of 13,000 Coinbase users.

See also: How Crypto Exchange Kraken Will Be Valued, And What It Has To Do With Coinbase

Earlier this year, the IRS announced a special task force to identify hidden cryptocurrency transactions. The IRS called the new action “Operation Hidden Treasure” and said that they had employed agents trained in cryptocurrency and virtual currency tracking to unearth tax evasion.

Check out our recent interview with Kraken's Head of Growth Dan Held

For the latest in financial news, exclusive stories, memes follow Benzinga on Twitter, Facebook & Instagram. For the best interviews, stock market talk & videos, subscribe to our YouTube channel.


Related Articles

Crypto Exchange Kraken Considers IPO After Coinbase Performance Post Direct Listing

Kraken’s Chief Executive is reportedly reconsidering the direct listing approach to take the crypto exchange public. What Happened: Jesse Powell, who co-founded Kraken in 2013 and acts as the exchange’s CEO, told Fortune on Thursday that an IPO now seems like a more attractive option. read more

ForUsAll Partners With Coinbase To Introduce 'Alt 401k' Retirement Plans With Crypto

What Happened: ForUsAll, a San Francisco-based retirement plan provider, introduced an alternative 401(k) plan that provides in-plan access to cryptocurrency. read more

US Senator Cynthia Lummis Asks Followers To Share Bitcoin Success Stories After Public Endorsement Of Cryptocurrency

What Happened: U.S. Senator Cynthia Lummis called for her Twitter followers to send her their Bitcoin success stories, issues, and concerns after her appearance at the Bitcoin 2021 conference in Miami. read more

Dogecoin Falls Over 17% After Coinbase Pro Listing And $1.2M Giveaway Of The Coin

The price of the meme cryptocurrency Dogecoin (CRYPTO: DOGE) fell significantly following its recent listing and giveaway announcement by the biggest US-based exchange Coinbase Global Inc. (NASDAQ: COIN). read more