Goldman Sachs-backed fintech company Circle and its former subsidiary Poloniex will share information about US taxpayers who conducted at least the equivalent of $20,000 in transactions in cryptocurrency during the years 2016 to 2020.
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According to the US Department of Justice (DoJ), the IRS wants to get the records of Americans who engaged in business with or through Circle.
"Those who transact with cryptocurrency must meet their tax obligations like any other taxpayer," said Acting Assistant Attorney General David Hubbert of the Justice Department's Tax Division.
In the meantime, a federal court in the District of Massachusetts permitted the IRS to serve a "John Doe" summons on Circle and Poloniex. A John Doe summons is a tool that allows IRS to locate the names of US Taxpayers otherwise "unknowable" to IRS. The DoJ emphasizes that the United States’ petition "does not allege that Circle has engaged in any wrongdoing in connection with its digital currency exchange business."
As iHodl earlier reported, Circle plans to launch its own custodian for non-fungible tokens (NFT) in the coming months. The fintech company will also develop transfer services for NFT collectibles. Circle will reportedly also add support for payments and payouts in bitcoin (BTC) and ether (ETH) for crypto-native marketplace experiences.
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