The United States Internal Revenue Service, IRS, has recently managed to obtain court approval for a “John Doe Summons” that is up for a purpose. It seeks to uncover high-value customers at Circle Internet Financial Inc., a cryptocurrency service provider.
IRS Receives Court Approval for Summons
Talking about the summons of IRS that has recently received approval from the Federal court in the District of Massachusetts has some really concerning demands. The summons demands that Circle Internet Financial Inc. along with all of its predecessors, subsidiaries, divisions, and affiliates submit the US taxpayers’ records.
More specifically, the summons demands the records of those taxpayers in the United States that have conducted cryptocurrency transactions that are equivalent to $20K in the time interval of four years from 2016 to 2020.
As a segment of an investigation into tax fraud, the Internal Revenue Service is deliberately looking for the records of the taxpayers in the United States.
Raising a concern that taxpayers may be misusing the opportunity of cryptocurrencies being difficult to be traced and having pseudo-anonymous traits. In accordance with the concern raised by the IRS, there are chances that the taxpayers may be hiding their taxable income by carrying out transactions in cryptocurrencies.
David A. Hubbert, the Acting Assistant Attorney General of the Justice Department’s Tax Division recently released a statement that read:
“Those who transact with cryptocurrency must meet their tax obligations like any other taxpayer.”
In addition to this, addressing the cooperation of the Department of Justice with IRS, David said:
“The Department of Justice will continue to work with the IRS to ensure that cryptocurrency owners are paying their fair share of taxes.”
Reason Behind Targeting of Circle
Well, the major behind targeting a cryptocurrency service provider Circle Internet Financial Inc. has not been made clear as of now. Provided the fact that the service provider is completely registered and legitimately functioning in the United States, the mention of Poloniex, may add up to some hints behind the target.
Since the purchase of Poloniex by Circle in the year 2018, the service provider has been busy seeking a financial license and introducing its own stable coin.