In a recent ruling, a California federal judge held that Kraken, an online cryptocurrency exchange program, has to turn over user information to the IRS as a result of a John Doe summons originally served on Kraken in 2021. The IRS launched Operation Hidden Treasure in May 2021 in an effort to root out tax abuses among cryptocurrency users. As part of these efforts, the IRS has been issuing John Doe summonses to major cryptocurrency platforms, seeking information that will enable the IRS to identify users who are not in compliance with tax reporting and payment obligations. Cryptocurrency platforms and users should expect this decision to further embolden an already aggressive IRS and Department of Justice.
Kraken Loses Bid to Avoid Turning Over Customer Information to IRS
