A US federal court has ordered crypto exchange Kraken to provide the IRS with information on customers who conducted large transactions between 2016 and 2020.
According to the release, the IRS is interested in data from users who, during the specified period, conducted transactions at least the equivalent of $20,000 annually.
The IRS believes some Kraken users have evaded taxes. The agency also intends to check whether the platform is complying with its customer identification obligations. IRS Commissioner Chuck Retting has stated:
"There is no excuse for taxpayers continuing to fail to report the income earned and taxes due from virtual currency transactions. This John Doe summons is part of our effort to uncover those who are trying to skirt reporting and avoid paying their fair share."
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Last April 1, the IRS also asked blockchain company Circle to provide information about its users. In 2016, a court allowed the IRS to access Coinbase user data. The company tried to appeal the decision, but only succeeded in relaxing the requirements.
Kraken plans to go public in 2022.