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IRS to summon users who don't report and pay tax on crypto transactions

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With the crypto community growing bigger and as trading volumes reach new highs, the United States is also making more effort to ensure that its Internal Revenue Service (IRS) could properly collect cryptocurrency tax.

U.S. Attorney Damian Williams, Deputy Assistant Attorney General David Hubbert and IRS Commissioner Charles Rettig announced that US judge Paul Gardephe authorized the IRS to issue a "John Doe summons," a term used when the IRS investigates unknown taxpayers.

The summons compels the New York-based M.Y. Safra Bank to submit information about taxpayers that might have failed to report and pay taxes on their crypto transactions.

According to the announcement, the IRS is specifically looking at users of the crypto exchange SFOX.The IRS believes that even though crypto users are required to report profits and losses, there's a significant lack of compliance from taxpayers when it comes to digital assets.

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