All taxpayers who traded at least $20,000 worth of crypto between 2016 and 2020 are being asked to release their information to Internal Revenue Services.
A John Doe summon has been ordered to be served on the Fintech firm cycle and which was granted by A U.S federal court, which the Internal Revenue Service or IRS will be requesting for the information of taxpayers that traded at least $20,000 worth of crypto assets on its platform between 2016 and 2020.
The summons apply to all subsidiaries, predecessors, subsidiaries, divisions and affiliates of circle Internet Financial Inc., which also includes LLC.
There is reasonbale grounds to believe that Cryptocurency users may have failed to comply with federal tax laws according to Department of Justice’s announcement, Judge Richard Stearns.
The document also notes the IRS “does not allege that Circle has engaged in any wrongdoing in connection with its digital currency exchange business,” adding:
“The summons seeks information related to the IRS’s ‘investigation of an ascertainable group or class of persons’ that the IRS has reasonable basis to believe ‘may have failed to comply with any provision of any internal revenue laws.‘”
A Circle representative told Law360: “We’re reviewing [the summons], and of course expect to work collaboratively with the IRS in responding to the court order.”