According to an order issued Monday by a federal district in California, the Internal Revenue Service (IRS), the US revenue agency, cryptocurrency distributor can send a “John Doe” subpoena to SFOX.
The IRS Requires Information From Transactions In Cryptocurrency Over $20,000
The order allows the agency to collect information on taxpayers in the United States who made at least $20,000 in crypto transactions using SFOX between 2016 and 2021.
The court order allows the IRS to send a John Doe subpoena to SFOX “to learn about possible violations of domestic revenue laws by unknown persons.” The lawsuit, announced Tuesday by the U.S. Department of Justice, does not allege any misconduct in SFOX’s digital currency business.
According to the IRS, the John Doe subpoena “does not identify the person to whom the subpoena was issued.” The institution may use this subpoena in an investigation against a specific person or group of people who cannot be identified.
“The information sought in the subpoenas approved today will help ensure that cryptocurrency holders comply with tax laws,” said David Hubbert, Assistant Attorney General of the Justice Department’s Tax Division.
According to the Justice Department, taxpayers must hide their taxable income from the IRS. bitcoin and use cryptocurrencies. U.S. District Court Judge Otis Wright stated in the court ruling that there is “reasonable basis” to believe that those who processed at least $20,000 in crypto transactions may not have complied with federal tax laws.
*Not investment advice.
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