The IRS was granted authorization to issue a « John Doe summons », which will require M.Y. Safra Bank to provide them with information on U.S. customers who may have failed to report taxable cryptocurrency transactions. This summons is specifically aimed at customers who used sFOX, a crypto broker that used M.Y. Safra Bank’s services. The IRS was also previously authorized to serve a John Doe summons on sFOX directly.
The press release stated, « Based on its recent experiences with cryptocurrencies, the IRS has strong reason to believe that many virtual currency transactions are not being properly reported on tax returns. »