U.S. Internal Revenue Service is authorized to access information about Circle’s cryptocurrency traders to detect tax scams.
According to Cointelegraph, a cryptocurrency media outlet on the 2nd (local time), the Internal Revenue Service (IRS) will request information from Circle for all U.S. taxpayers who traded at least $20,000 worth of cryptocurrency from 2016 to 2020.
The U.S. federal court gave the IRS the right to issue subpoenas to the Fintech company’Circle’, where all information about U.S. taxpayers who traded at least $20,000 worth of cryptocurrency assets on their platform from 2016 to 2020. Granted.
The subpoena will be applied to Circle Internet Financial including’all proceedings including Polonics LLC, subsidiaries, divisions and affiliates’.
According to the Justice Department’s announcement, Judge Richard Stearns concluded that “we have good reason to believe that cryptocurrency users may not have followed federal tax laws.”
The document also added that the IRS claimed that “Circle has not committed any misconduct in relation to its digital currency exchange business.”
“This subpoena relates to the search for information related to the IRS”verifiable group or class investigation’ with reasonable grounds to believe that the IRS’may not have complied with any provisions of the Internal Revenue Act’.” said.
“We are reviewing subpoenas, and we look forward to responding to court orders in cooperation with the IRS,” Circle said in Law 360.
Circle acquired Polonics, a popular digital asset exchange in 2018, but the following year announced that it would “spin out” Polonics as a new company backed by an investment group affiliated with Justin Sun of Tron.