The court granted the IRS’s request to receive data from the Circle and Poloniex cryptocurrency exchanges of customers who made transactions with cryptoassets worth more than $ 20,000 from 2016 to 2020.
The Massachusetts court granted the IRS request for Circle and Poloniex exchanges to transfer the data of all customers who made cryptocurrency transactions of $ 20,000 or more between 2016 and 2020. This tactic is used by the IRS to obtain information about individuals whom it cannot identify by name.
The IRS told the court that the agency needs the data to verify that traders are paying taxes. The regulator believes that many users of exchanges have not met their tax obligations. The IRS said the request to Circle did not mean the company was in breach of the law. IRS Commissioner Chuck Rettig said:
“These actions by the IRS tell US taxpayers that the IRS is working to ensure that they comply with the rules for transactions with cryptoassets. Such requests for information allow the IRS to identify those who do not properly report their cryptoasset transactions. We will enforce laws in cases of systematic violation or fraud. ”
Earlier, the IRS similarly demanded information from Coinbase, which battled the IRS in court for over a year before ultimately complying with the requirement, transferring information on transactions of more than 13,000 customers. Circle spokesman Josh Hawkins said:
“We are reviewing the request and, of course, look forward to working with the IRS in response to the court order.”
Recall that recently, the Internal Revenue Service of Canada also won a lawsuit in the case of access to the data of clients of the cryptocurrency exchange Coinsquare. The exchange will transfer data from 5-10% of clients to the regulator.
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