The US district judge has recently authorized the Internal Revenue Service (IRS) to make its move against a certain group of cryptocurrency investors. The particular group in question are the tax evaders who generate their revenues from cryptocurrencies.
The Reason behind the Decision
A significant rise has been witnessed in the adoption of cryptocurrencies in the United States in recent years. Therefore, regulators and other authorities are looking at the potential of tax revenues that could be generated through cryptocurrency transactions.
However, due to the decentralized nature of the cryptocurrency industry, many investors in the United States are trying to evade taxes.
In consideration of the above, the district judge in the United States has passed a judgment. The judgment authorizes the IRS to take strict actions against those who are involved in evading crypto taxes.
Judge Paul Gardephe Passed the Judgment
Judge Paul Gardephe of the US district court issued the authorization for the Internal Revenue Service, allowing them to monitor the activities of each cryptocurrency investor.
If the IRS establishes that a particular person or entity is involved in evading taxes from crypto transactions, it would take strict action.
The IRS has been legally authorized to issue summons to any US citizen who has been involved in trading and transacting cryptocurrencies but is found evading taxes.
The IRS has also summoned M.Y. Safra Bank in order to acquire details around as many people as possible who are transacting in cryptocurrencies. M.Y. Safra Bank is a full-service banking institution.
People Involved in Passing the Move
According to the sources, the move was announced by David Hubbert, Damian Williams, and Charles Rettig.
David Hubbert is the Department of Justice’s Tax Division’s Deputy Assistant Attorney General. Damian Willians is the United States Attorney, and Charles Rettig is the IRS Commissioner.
Major Consideration for Summons
According to the IRS, sFOX would be among the highest consideration for the summons. It is a prime brokerage platform in the United States that is focused on cryptocurrencies.
The main reason behind considering sFOX is the partnership the particular brokerage currently has with M.Y. Safra Bank. Through the sFOX platform, the users are able to interact and use the cryptocurrency services offered by the M.Y. Safra Bank.
Users Failing to Report Taxes
The IRS will be looking for any customers on the platform that have been interacting with the cryptocurrency-related services. They will establish whether these users have evaded taxes or not.
If these people are found doing so, the IRS will deal with them accordingly.
According to the IRS, US citizens with cryptocurrencies in their possession must pay between 10% and 37% taxes if they have held crypto for less than a year.
If they have held crypto for more than a year, then the taxes are low and may range between 0% and 20%.