From the article below, it points out that the IRS is focusing more and more on crypto transactions. Initially, it was the disclosure requirement in the 1040 tax return to report if the taxpayer hold crypto currencies. The exact question is “At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?”
A federal court in the United States has authorized the Internal Revenue Service (IRS) to serve a “John Doe Summons” on the crypto exchange Kraken, seeking identities of U.S. taxpayers who have used cryptocurrency, the Department of Justice said on Wednesday.
The IRS is seeking information about taxpayers who conducted at least $20,000 worth of transactions in cryptocurrency from 2016 to 2020, the DOJ said in a statement.
“Those who transact with cryptocurrency must meet their tax obligations like any other taxpayer”, acting Assistant Attorney General David Hubbert of the Justice Department’s Tax Division said in the statement.
Link Reuters’ article – https://www.reuters.com/world/us/us-court-authorizes-irs-seek-identities-taxpayers-who-have-used-cryptocurrency-2021-05-05/
