According to a report by Bloomberg, a federal court has ordered crypto exchange Kraken to provide the United States federal tax laws enforcement agency, the Internal Revenue Service (IRS) with account and transaction information so that the agency can figure out whether any of the company’s users underreported their taxes.
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IRS Wants Details of Customers with Transactions Worth $20K
As per the court’s order, which was issued on Friday, Kraken is required to provide details regarding users who made over $20,000 in transactions during a calendar year, including the user’s name, birthdate, taxpayer identification number, address, phone number, email address, and a variety of further records.
Kraken Asked to Provide Blockchain Addresses
Additionally, Kraken will have to provide the IRS with basic information as well as blockchain addresses and transaction hashes that are already a part of the transaction data.
It appears that the IRS also made an attempt to obtain employment details and the source of Kraken’s money. However, the judge who looked upon the case, Joseph Spero, flatly rejected a number of the IRS’s requests.
IRS Wants Investors to Declare Crypto Income
As reported by TheCoinRise, the IRS listed a few requirements for crypto income reporting in January for 2022 filing. In February, just after the cryptocurrency exchange settled charges with the U.S. Securities and Exchange Commission for allegedly breaking securities laws with its staking service, the IRS filed a court petition in the Northern District of California.
Kraken Charged by the SEC
Notably, Kraken had been charged by the Securities and Exchange Commission (SEC) for failing to submit the required paperwork in order to promote and sell its staking-as-a-service programme for digital assets. As a result, the agency demanded that Kraken stop its staking programme and pay $30 million to resolve the SEC complaints.
Following the filings, Kraken CEO Jesse Powell criticized the regulators, alleging that they were aligned with bad players in the industry while creating rivalry with the good folks. Powell claimed on Twitter that despite several warnings to regulators about significant red flags and obvious illegal activity in the business, things were ignored for years.
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