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Specifically, the IRS summons seeks information about customers of SFOX, a cryptocurrency prime broker, who used banking services that M.Y. Safra Bank offered to SFOX customers engaged in cryptocurrency transactions.
As described further in the IRS’s petition in support of the summons, though taxpayers who transact in cryptocurrencies are required to report any associated profits and losses on their tax returns, the IRS’s experience has demonstrated significant tax compliance deficiencies relating to cryptocurrencies and other digital assets.
SFOX has partnered with M.Y. Safra to offer SFOX users access to cash-deposit bank accounts.
In this action, the district court granted the IRS permission to serve what is known as a John Doe summons on M.Y. Safra.
- This case is being handled by the Office’s Tax and Bankruptcy Unit.
Assistant U.S. Attorney Jean-David Barnea is in charge of the case.
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