IRS Summons Users Who Fail to Report and Pay Tax on Crypto Transactions

Summon requires M.Y. Safra Bank will submit information on taxpayers who have failed to file and pay their crypto taxes.

As the crypto community grows and trading volumes reach new heights, the United States is also doing more to ensure that its Internal Revenue Service (IRS) can properly collect the tax. on cryptocurrencies.

U.S. Attorney Damian Williams, Assistant Deputy Attorney General David Hubbert, and IRS Commissioner Charles Rettig announced that U.S. Judge Paul Gardephe had authorized the IRS to issue a "John Doe Summons" , a term used when the IRS investigates unknown taxpayers.

The summons obliges the M.Y. based in New York. Safra Bank to submit information on taxpayers who may have failed to report and pay taxes on their crypto transactions. According to the announcement, the IRS is specifically interested in users of the SFOX crypto exchange.

The IRS believes that while crypto users are required to report profits and losses, there is a significant lack of compliance by taxpayers when it comes to digital assets. According to Williams, the government will use all of its tools to identify taxpayers and make sure everyone pays their taxes. He explained that:

"Taxpayers are required to fairly report their tax obligations on their returns, and obligations arising from cryptocurrency transactions are not exempt."

On the other hand, Rettig said the authorization of John Doe's summons supports their efforts to ensure that taxpayers getting into crypto "pay their fair share".

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