Cryptocurrencies

The US tax authorities will be able to access the files of Kraken customers who make more than $ 20k in transactions

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My freedom ends where that of the taxman begins. The US tax services have obtained a court order to demand records from Kraken clients in order to fight tax evasion. The net launched by the tax authorities will however let the smallest fish slip away.


$ 20,000 of worries

According to a press release from May 5, 2021, the Northern District of California made an order theInternal Revenue Service (IRS) to serve a summons John doe at Kraken and its subsidiaries to track down tax fraud.


Assignment John doe is a tactic used by the tax authorities to request information about people whom they cannot identify by name – she is close to the complaint against X in France.

The tax authorities will be able to access the financial information of the platform’s clients who have made $ 20,000 in crypto transactions. TheIRS is interested in customers Us of Kraken having carried out transactions between 2016 and 2020.

The subsidiaries of Kraken and its parent company based in United States, Payward Ventures, will have to provide theIRS documents identifying US taxpayers who “may have failed to comply with internal tax laws“.

According to the press release, Kraken is not under investigation for wrongdoing, but rather the subpoenas are an attempt to strengthen the “tax department investigation of an identifiable group or class of persons“.

The fiscal circle

The tax directives of theIRS have been reissued. They describe the treatment of cryptocurrencies as property, with all corresponding federal tax burdens.

In April 2021, the crypto payment company Circle was also the subject of a federal court order in the District of Massachusetts, requesting identification documents from all Circle and Poloniex customers with transactions over $ 20,000 between 2016 and 2020.

Cryptocurrencies recognized as goods by the tax authorities: nothing to celebrate! What if the Biden administration declared cryptos illegal, would all taxes owed be waived, and those already paid refunded? Even the courts do not recognize the right to financial anonymity. Exchanges remain the weak point of the cryptosphere, delivering its customers to sharks. Some crypto projects like Monero (XMR) offer increased privacy protection. When will real DEXs, with no identifiable owner, with algorithms complex enough to protect its users from the gaze of voyeurs.

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Fashion is good, but blockchain is the future, we agree, right ?! It’s a great opportunity and an evolving sector! On a daily basis, my job is to try to popularize cryptos / blockchains as well as possible, which appear to be far too technical.

DISCLAIM

The comments and opinions expressed in this article are those of the author alone, and should not be considered as investment advice. Do your own research before making any investment decisions.

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