Circle and Poloniex Will Share User Identities With IRS

Key Takeaways

  • The IRS has gained authorization to order two companies, Circle and Poloniex, to share data on U.S. based investors.
  • The regulator is seeking data on US taxpayers who made transactions of at least $20,000 between 2016 and 2020.
  • U.S. regulators have many tax efforts underway.

The IRS will likely gain access to records from two crypto companies, Circle and Poloniex, to root out tax evasion among U.S. investors.

Circle and Poloniex Will Share Data

According to the U.S. Department of Justice (DoJ), a federal court in the District of Massachusetts has authorized the Internal Revenue Service (IRS) to issue summons to Boston-based blockchain payments firm Circle and its former subsidiary Poloniex.

The legal action will ask Circle and Poloniex to share data on U.S.-based customers who conducted crypto transactions worth at least $20,000 between 2016 and 2020.



This type of order is known as a John Doe summons, an investigative tool deployed by the IRS to seek data on specific U.S. individuals who may have failed to comply with federal tax laws.

“The John Doe summons is a step to enable the IRS to uncover those who are failing to report their virtual currency transactions properly. We will enforce the law where we find systemic non-compliance or fraud,” IRS Commissioner Chuck Rettig wrote.

The DoJ’s official announcement clarified that it does not allege that Circle was involved in any wrongdoing. Instead, the action is part of an “investigation of an ascertainable group or class of persons” that the agency suspects are non-compliant with U.S. tax laws.


Regulators Have Other Tax Efforts Underway

The order is another example of how U.S. regulators have increased their efforts to monitor the cryptocurrency sector. In previous years, crypto exchange Coinbase has become well known for cooperating with the IRS and reporting user trading activity.

Separate from the IRS’s efforts, the U.S. Treasury and FinCEN plan to enforce KYC rules for self-hosted crypto wallets. The regulation would make it mandatory for cryptocurrency firms in the U.S. to record personal data associated with transactions above $3,000 and report crypto transactions over $10,000.

At the time of writing this author held Cosmos.

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.

Source: Read Full Article