The global crypto market cap is $ with a 24-hour volume of $. The price of Bitcoin is $18,670.02 and BTC market dominance is %. The price of Ethereum is $1,281.68 and ETH market dominance is %. The best performing cryptoasset sector is Fan, which gained 12%.

The Right Place to Buy, Earn, Exchange and Borrow against Your Crypto.

The IRS has found that tax reporting and compliance is significantly low when it comes to digital asset transactions.

Cover art/illustration via CryptoSlate

On Sept. 22, a U.S. judge granted the Internal Revenue Service’s (IRS) petition that requires M.Y. Safra Bank to submit records of taxpayers who may not have reported or paid taxes on crypto transactions.

Specifically, the IRS is interested in the records of cryptocurrency prime broker SFOX’s users, according to a press release. New York-based M.Y. Safra bank offered banking services to SFOX customers for crypto transactions, the U.S. Attorney’s office said in the press release.

Taxpayers must report any profits or losses associated with cryptocurrencies on their tax returns. However, the Attorney’s office said the IRS had found a significant gap in tax compliance regarding digital assets.

IRS Commissioner Charles P. Rettig said:

“The government’s ability to obtain third-party information on those failing to report their gains from digital assets remains a critical tool in catching tax cheats… Taxpayers earning income from digital asset transactions need to come into compliance with their filing and reporting responsibilities.”

According to the press release, the IRS has found “significant underreporting” of crypto transactions through summons issued to other cryptocurrency dealers. Additionally, the IRS has identified at least ten taxpayers who used SFOX for crypto trades but did not report them as required by law.

As a crypto prime dealer and trading platform, SFOX connects crypto exchanges, over-the-counter digital asset brokers, and liquidity providers. According to the press release, it serves over 175,000 registered users who have collectively conducted transactions worth more than $12 billion since 2015.

SFOX partnered with M.Y. Safra bank to enable its users to access cash-deposit accounts. Users could use their cash to trade cryptocurrencies through those accounts.

According to the press release, the IRS expects that M.Y. Safra will be able to offer information regarding the identities and crypto transactions of SFOX users that used the bank’s services. The IRS will use the information from M.Y. Safra bank and other sources to evaluate any gaps in tax compliance.

The U.S. Attorney’s office of the Southern District of New York said that the summons to be issued does not equate to any allegations of wrongdoing. Instead, the summons is a means of uncovering information about unknown taxpayers that may have failed to comply with the internal revenue laws.

The IRS also received a green light to serve summons demanding customer transaction records from SFOX itself on Aug. 15.

Monika first started reading about crypto in 2020 and kept going deeper and deeper down the rabbit hole. While she is always skeptical of new projects, she earnestly believes blockchain and the crypto industry can bring relief to some of the most pressing problems of our time, including financial inequality and transparency. She is a voracious reader, and her fondness for food only rivals her love for books. Monika was previously a reporter at Jumpstart Media and Forkast News.

Become a member of CryptoSlate Edge and access our exclusive Discord community, more exclusive content and analysis.

Disclaimer: Our writers' opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.

Whales are considered smart money within the Bitcoin ecosystem since they have managed to hold through almost every bear market cycle.

Binance launches Global Advisory Board to support responsible regulation of crypto, Russia's regulators agree to allow crypto use in international payments and much more in this edition of CryptoSlate Wrapped Daily.

Russia apex bank and its finance ministry had previously held opposing views on the use of crypto.

Matt Hancock announced during Zebu Live that HMRC needs to take a growth-maximizing mindset by lowering taxes to foster innovation within crypto

The Hotel California song is about a prison where no one escapes from.

Predictive price models have come under fire recently, but the Bitcoin Rainbow Chart adds a new lower band to stay "valid."

The SEC's jurisdiction claim sets a dangerous precedence for the crypto industry as assets whose nodes are densely clustered in the US could face this overreach in the future.

Binance has been able to patch the bug and is currently looking into the situation causing the loss of $20M $HNT

US citizens who had sent cryptocurrency to Tornado Cash but did not complete the mixing transaction before the sanctions can apply for a withdrawal license from the OFAC. 

Google Cloud blockchain developer Sam Padilla showcased the latest update to Google Search which includes a real-time Merge countdown with merging pandas

LUNA Classic developers have introduced high yield staking rewards and token burns in a bid to bring investors back.

Terra Classic's come back is made all the more evident as recent price spikes now place it 26th biggest project by market cap.

The Head of Legal of blockchain intelligence company TRM Labs talked to CryptoSlate about what TRM is doing to be the "anti-money laundering for crypto."

Got a story tip? Email [email protected]

Disclaimer: By using this website, you agree to our Terms and Conditions and Privacy Policy. CryptoSlate has no affiliation or relationship with any coin, business, project or event unless explicitly stated otherwise. CryptoSlate is only an informational website that provides news about coins, blockchain companies, blockchain products and blockchain events. None of the information you read on CryptoSlate should be taken as investment advice. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own diligence before making any investment decisions. CryptoSlate is not accountable, directly or indirectly, for any damage or loss incurred, alleged or otherwise, in connection to the use or reliance of any content you read on the site.

© 2022 CryptoSlate. All rights reserved. Terms | Privacy

Please add "[email protected]" to your email whitelist.