Specifically, the IRS is reportedly cleared to act as John Doe in summoning information from Circle, regarding any individual carried out trading of a minimum of $20,000 equivalent of crypto assets, across its platform, within the time frame of 2016 and 2020.
The summon will be applicable towards Circle Internet Financial Inc., covering every “predecessors, subsidiaries, divisions, and affiliates, including Poloniex LLC.”
Per details provided by the US DoJ, Judge Richard Stearns concluded there is a “reasonable basis for believing that cryptocurrency users may have failed to comply with federal tax laws.”
The paper further mentioned that the IRS “does not allege that Circle has engaged in any wrongdoing in connection with its digital currency exchange business”.
“The summons seeks information related to the IRS’s ‘investigation of an ascertainable group or class of persons’ that the IRS has reasonable basis to believe ‘may have failed to comply with any provision of any internal revenue laws.’”
Attorney General David Hubbert of the Department of Justice’s Tax Division reportedly claimed that any individual performing transactional activities with crypto are required to fulfill their tax duties like any other taxpayer.
The Department of Justice will keep on collaborating with the IRS to “ensure that cryptocurrency owners are paying their fair share of taxes.”
A spokesperson from Circle reportedly stated that the summon is in review at the moment, and “of course expect to work collaboratively with the IRS in responding to the court order.”