The United States Internal Revenue Service is after the cryptocurrency market and it is not going to back off anytime soon. The IRS Commissioner, Charles Rettig, had held the crypto market responsible for a gap of $1 trillion in the tax revenues. Per the commissioner the complexity and lack of transparency in the crypto market when it comes to taxpayers’ information has resulted in uncollected revenues.
The commissioner had also stated IRS’s cybercrime unit to be actively looking into the matter. Operation Hidden Treasure has been initiated by the IRS which tracks taxpayers who omit cryptocurrency holdings from their tax returns.
A federal court has authorized the IRS to serve John Doe summons to Circle Internet Financial Inc. and any of its subsidiaries or affiliates. The Circle is a digital currency exchanger based in Boston and the IRS plans on accessing records of Americans who have engaged in any sort of business through Circle. The John Doe Summons does not identify or list any names, neither does it alleges the Circle of wrongdoings. It is a mere tool of the IRS to identify any person or group of persons who are suspected to have been non-compliant.
According to the commissioner of IRS, the authorization of John Doe summons has brought the IRS one step closer to its aim of tax collection. It will enable the IRS to identify tax evaders and enforce the law.