Court Authorizes Kraken Summons Seeking Identity of Crypto Users
A federal court has ordered Kraken exchange to provide account information to the IRS pursuant to a “John Doe” summons. The IRS sought information about U.S. taxpayers who conducted at least $20,000 in transactions on the exchange from 2016 through 2020.
The Kraken summons follows another federal court ruling authorizing a similar summons of crypto exchange Circle and Poloniex for users who also conducted $20,000 or more in transactions for the same years.
If you are a Kraken, Circle and/or Poloniex user who conducted more than $20,000 in transactions – regardless of gains or losses – from 2016 through 2020, then it is important you contact a Kugelman Law tax attorney today to review any compliance issues.
Because crypto transactions can be difficult to trace, the IRS alleges taxpayers are using Kraken, Circle, and other exchanges to hide taxable income and failing to comply with tax law by not accurately reporting crypto activity. Now Kraken and Circle must produce records to the IRS identifying those taxpayers who had more than $20,000 in transactions between 2016 and 2020 along with documents related to those transactions, according to the court order.
Like the Coinbase summons of 2018, the Kraken and Circle summonses are expected to result in tax return audits and even criminal investigations.
This is where Kugelman Law cryptocurrency attorneys can help with tax compliance.
Our team of attorneys and accountants will identify the scope and analyze the information reported on your tax return in order to determine compliance, address any potential non-compliance issues, and amend any prior tax returns to accurately report gains and losses, if necessary.
For missing records or accounting, our CPAs use proprietary, cutting edge software to recreate your activity and reconstruct incomplete or missing financial records. The improved documentation has helped make Kugelman Law a standout firm in cryptocurrency cases.
For any potential audit or criminal investigation, a Kugelman Law crypto attorney can act as your representative and interface with the IRS on your behalf.Contact Kugelman Law Tax & Cryptocurrency Attorneys Today
If you are a Kraken or Circle user who conducted more than $20,000 in transactions – regardless of gains or losses – from 2016 through 2020, then it is important you contact a Kugelman Law tax attorney today to review any compliance issues.