Kraken to turn over select customer data to IRS after July court loss
Kraken alerted users by email t on Oct. 25 that it would provide certain customer information to the Internal Revenue Service (IRS). The crypto exchange company said that the IRS issued a summons in May 2021 and ordered it to provide a variety of records and data.
Kraken explained that it attempted to fight those demands in court and managed to limit the number of clients affected and reduce the amount of data concerned.
Kraken said that it must nevertheless provide the IRS with profile information and transaction records for customers who transacted more than $20,000 in any year between 2016 and 2020. Specifically, Kraken said that it must provide users’ names, birthdates, tax ID numbers, addresses and contact information, and transaction histories.
Kraken additionally noted that it plans to share the information covered by the court’s order next month, in early November 2023.
Kraken and IRS case concluded in July
Earlier reports indicate the relevant court case concluded in July 2023. At that time, Kraken made a public statement in which it said that it fought the IRS because the tax agency sought “intrusive and unnecessary information” about its U.S. clients.
The company expressed concerns that the IRS could leak this data, exposing its customers to the possibility of identity theft and other risks.
The IRS’ original order attempted to have Kraken surrender users’ IP addresses, banking details, employment information, and sources of wealth, as well as the more standard information that the company must still provide.
Those earlier reports indicate Kraken must also provide certain on-chain data to the IRS — something that was not mentioned in its latest email.
Kraken is one of just a few crypto companies that have been targeted by the IRS; others include Coinbase and Circle. However, crypto investors in the U.S. are generally required to report all crypto activity in their tax returns regardless of any specific action.
The post Kraken to turn over select customer data to IRS after July court loss appeared first on CryptoSlate.
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Kraken to turn over select customer data to IRS after July court loss
Kraken alerted users by email t on Oct. 25 that it would provide certain customer information to the Internal Revenue Service (IRS). The crypto exchange company said that the IRS issued a summons in May 2021 and ordered it to provide a variety of records and data.
Kraken explained that it attempted to fight those demands in court and managed to limit the number of clients affected and reduce the amount of data concerned.
Kraken said that it must nevertheless provide the IRS with profile information and transaction records for customers who transacted more than $20,000 in any year between 2016 and 2020. Specifically, Kraken said that it must provide users’ names, birthdates, tax ID numbers, addresses and contact information, and transaction histories.
Kraken additionally noted that it plans to share the information covered by the court’s order next month, in early November 2023.
Kraken and IRS case concluded in July
Earlier reports indicate the relevant court case concluded in July 2023. At that time, Kraken made a public statement in which it said that it fought the IRS because the tax agency sought “intrusive and unnecessary information” about its U.S. clients.
The company expressed concerns that the IRS could leak this data, exposing its customers to the possibility of identity theft and other risks.
The IRS’ original order attempted to have Kraken surrender users’ IP addresses, banking details, employment information, and sources of wealth, as well as the more standard information that the company must still provide.
Those earlier reports indicate Kraken must also provide certain on-chain data to the IRS — something that was not mentioned in its latest email.
Kraken is one of just a few crypto companies that have been targeted by the IRS; others include Coinbase and Circle. However, crypto investors in the U.S. are generally required to report all crypto activity in their tax returns regardless of any specific action.
The post Kraken to turn over select customer data to IRS after July court loss appeared first on CryptoSlate.
Read More