IRS Comes After Clients Of Another Crypto Exchange

IRS comes after clients of another crypto exchange after running a full-on tax-related investigation. The US Internal Revenue Service (IRS) is seeking authorization to examine SFOX Inc. and its partner’s clients as part of the aforementioned tax-related investigation.

IRS Comes After Clients Of SFOX Inc.

The agency tasked with collecting taxes is looking to do precisely that, but this time it’s looking to identify the platform’s cryptocurrency users, who are likely individuals who have not yet made this required payment to the state’s coffers, according to Bloomberg.

In the court documents submitted on Monday in Los Angeles, a lawyer for the government was reported as saying:

“Transactions in cryptocurrency have grown substantially in recent years, and the IRS is concerned that taxpayers are not properly reporting these transactions on their tax returns.”

Bloomberg cited court documents from New York and Los Angeles in which the tax authority requested permission from federal judges to serve summonses on SFOX and M.Y. Safra Bank. These banks partnered with the platform in 2019 to enable it to provide its customers with cash deposit accounts that are insured by the Federal Deposit Insurance Corporation.

The report further states:

“The IRS is seeking account and transaction records for users with cryptocurrency transactions over [USD] 20,000 in any year from 2016 to 2021.”

Similar information requests, known as “John Doe” summonses, have been sent by the US to cryptocurrency exchanges, Circle, the company that issues USDC stablecoins, and other parties in order to obtain user information.

According to reports, the IRS was allegedly considering issuing more John Doe summonses to crypto exchanges in March of this year as it increased its examination of digital assets.

Since the IRS began focusing on the cryptocurrency market, its actions have largely paved the way and established precedents in this new sector.

What is SFOX Inc?

SFOX Inc. is a main trader in cryptocurrencies. The company provides a platform for trading cryptocurrencies that tries to consolidate prices from many exchanges into a single application. Large investors including funds, family offices, and high-net-worth individuals are catered to by SFOX.
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The company was back in May 2015. The current Chief Executive Officer (CEO) is Akbar Thobhani.

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