Michelle Ferreira, Barbara T. Kaplan, Pallav Raghuvanshi and Shira Peleg, of Greenberg Traurig LLP, have made available for download their article, “IRS Actively Seeking Information Regarding Cryptocurrency Via John Doe Summonses,” published in a Greenberg Traurig Alert. The abstract is as follows:
Taxpayers that have engaged in cryptocurrency transactions should be aware that the Internal Revenue Service (“IRS”) is seeking customer records from cryptocurrency exchanges.
The Department of Justice (“DOJ”) recently filed petitions in the District of Massachusetts and the Northern District of California asking to allow the IRS to serve John Doe summonses on two cryptocurrency exchanges.
A John Doe summons is an investigative tool used by the IRS to seek information about unnamed taxpayers from a third party. A John Doe summons is authorized under Internal Revenue Code Section 7609(f) and allows the IRS to obtain the names, requested information, and documents concerning all taxpayers in a certain group.
Posted by Bella Hoang, Managing Associate Editor, Wealth Strategies Journal.