A US federal court has authorized the U.S. Internal Revenue Service to file a subpoena by John Doe at the Fintech Circle to gather all information about U.S. taxpayers who traded at least $ 20,000 in cryptocurrencies between 2016 and 2020.
The repeal will apply to Circle Internet Financial Inc., including “former companies, subsidiaries, divisions and subsidiaries, including Poloniex LLC.”
Judge Richard Stearns concluded that there is “reasonable cause to believe that cryptocurrency users may not have complied with federal tax laws,” according to a statement from the Justice Department.
The document also notes that the IRS “does not claim that Circle was involved in anything wrong in connection with its exchange of cryptocurrencies,” he added:
The conversation is aimed at obtaining information related to an “IRS survey of the audited group or class of persons”, where the IRS reasonably believes that it may not have complied with any provision of any of the internal income laws. ”
A spokesman for the agency told Law360: “We are considering [the summons] and of course look forward to cooperating with the tax authorities in response to the court ruling.”
“Those who work with cryptocurrencies must fulfill their tax obligations like all other taxpayers. The Ministry of Justice will continue to cooperate with the tax authorities to ensure that cryptocurrency holders pay a reasonable share of the tax, “said Justice Minister David Hubert from the department. Tax Office for Justice.
Circle was founded in October 2013 by Jeremy Aller and Sean Neville, and the following year the company launched a Bitcoin wallet that would later become the payment application for cryptocurrency Circle Pay. In 2018, Circle launched USD Coin in collaboration with Coinbase, which is currently the second largest stable coin by market value.
Circle acquired the popular digital asset exchange Poloniex in 2018, but announced that Poloniex will move to a new company next year, supported by an investment group affiliated with Justin Sun of Tron.