Mon, 14 Jun 2021

WASHINGTON D.C.: To prevent the public from not reporting revenues tied to cryptocurrencies, a U.S. federal court has ruled that the Internal Revenue Service (IRS) may issue a summons to San Francisco-based bitcoin trading platform Kraken to obtain details on taxpayers who had made transactions using virtual currencies.

This is seen as a bid to tighten loopholes that allow those using cryptocurrencies to avoid paying taxes, according to the Department of Justice on May 5.

The IRS is looking to unearth data pertaining to taxpayers who transacted no less than US$20,000 in virtual currency during the 2016-2020 period, the Justice Department said.

"Those who transact with cryptocurrency must meet their tax obligations, like any other taxpayer," according to a statement by acting Assistant Attorney General of the Tax Division David Hubbert.

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