Are you a US resident or citizen using a centralized cryptocurrency exchange? You might want to make sure you’ve got your tax affairs in order because it looks like the Internal Revenue Service (IRS) is on a crypto blitz again.
According to popular YouTube channel Crypto Tips, the US tax agency has issued a so-called ‘John Doe’ summons to US-based crypto exchange sFox.com. This requires the company to provide details of all transactions with US residents and citizens. It’s not the first time the IRS has gone after US-based crypto exchanges. Over the past few years, the agency has also issued similar summons to Coinbase, Circle, and Kraken.
On a ‘completely unrelated’ note, the Biden government has also announced a US$78 billion funding package for the IRS, which some sources say will be used to hire an additional 87,000 employees by 2031. At the same time, job adverts for IRS agents have appeared, in which it is specified they must be prepared to use ‘lethal force’ and undergo firearms training.
Despite Democrats and left leaning media dismissing claims of a massive IRS expansion, and plans to go after middle income earners, as just another piece of pro-Trump propaganda, it has got many in the US crypto community concerned.
Of course, if you’re all above board and have been reporting your crypto assets and trades, you’ve got nothing to worry about. But, on the other hand, in the most unlikely event that you haven’t, you’ll probably want to get on top of that as soon as possible.
Or, just move to Portugal.