Kraken Is Requested By The IRS For Customer Information From $20,000

Key Points:

• Kraken has been ordered to provide certain user information to the US Internal Revenue Service (IRS).
• The IRS wants to identify accounts with more than $20,000 in crypto transactions annually between 2016 and 2020.
• The judge said the government had a legitimate purpose to search the documents.

According to The Block, Kraken was ordered by a judge on Friday to provide certain user information to the Internal Revenue Service (IRS).

The IRS wants the exchange to identify accounts with more than $20,000 in crypto transactions annually between 2016 and 2020. Kraken has previously objected to the IRS subpoena partly because its concerns will create a great burden. The exchange called the agency’s summons an “irrational treasure hunt,” arguing that it crossed the line.

“The Government has a legitimate purpose for seeking the materials described in the summon. As discussed above, the summons was issued in connection with an investigation by the IRS to determine the identity and correct federal income tax liability of US persons who conduct transactions in cryptocurrency during the period 2016-2020,”

Judge Joseph C. Spero said in the court document.

Kraken will have to disclose information such as name, date of birth, physical address, phone number, and tax identification number.

Friday’s ruling in favor of the government comes amid a deepening US crackdown on cryptocurrencies. The Securities and Exchange Commission this month filed a lawsuit accusing Coinbase of operating an illegal exchange and alleging that Binance.US mishandled customer funds, misled investors and agencies’ regulatory authorities as well as violations of securities rules.

Kraken is a leading cryptocurrency exchange with a daily trading volume of around $650 million globally, according to CoinMarketCap. The company did not immediately respond to an email request for comment on the ruling.

Kraken currently only offers US Forms 1099-MISC, 1099-INT, and 1099-NEC, which are filed with the US Internal Revenue Service (IRS), and a copy will be provided to you (if you qualify). This could change in the coming years as tax reporting laws constantly change.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news : https://linktr.ee/coincu

Foxy

Coincu News