According to U.S. Attorney Damian Williams for the Southern District of New York, the IRS has requested permission to obtain information that will help identify SFOX and Safra Bank customers who have failed to report cryptocurrency profits and losses to the agency on their tax returns.
“Taxpayers are required to truthfully report on their tax returns the tax liabilities arising from transactions with cryptocurrencies. The IRS has the right to use all the tools at its disposal to identify violators who have understated their tax obligations, and also to make sure that everyone pays their fair share, ”said Attorney Williams.
A court decision to provide customer data does not imply that MY Safra or SFOX have committed any wrongdoing. The IRS aims to obtain information about violations of internal revenue laws by persons whose identity it does not know, as well as the opportunity to call for explanations suspected of understatement of tax liabilities.
Earlier, the US Internal Revenue Service reported that the number of crimes related to cryptocurrency has increased significantly. So, according to the IRS report, for the 2021 financial year, the agency confiscated $3.5 billion in cryptocurrencies, which accounted for 93% of the total seized funds.