Kraken Has A Case Vs The IRS
It’s been just revealed the fact that Kraken might just have a case against the IRS. Check out the latest details below. Kraken vs the IRS According to these latest reports, it seems that the IRS is looking to get intel...
Archive context
Older archive item. Useful for background and entity history, but not a fresh market-moving signal.
It’s been just revealed the fact that Kraken might just have a case against the IRS. Check out the latest details below.
Kraken vs the IRSAccording to these latest reports, it seems that the IRS is looking to get intel on certain Kraken users as part of a tax investigation, the crypto exchange is standing its ground on the scope of its request.
As the online publication Blockworks notes, the legal battle is “new territory,” according to Miles Fuller, a former IRS senior counsel who now works as head of government solutions at crypto tax firm TaxBit.
The IRS’ litigation against Kraken offers “the first real judicial look” at language added by Congress in 2019 to the IRS’ use of John Doe summonses, he added.
The same online publication mentioned above notes the fact that the Taxpayer First Act — passed that year — requires the IRS to “narrowly tailor” such summonses to only include requests for information pertaining to tax compliance or non-compliance.
“It followed the federal district court in California first allowing the IRS to serve crypto exchange Coinbase with a John Doe summons in November 2016.”
According to the very same reports, the IRS ultimately won the ability to enforce the summons, but only after Coinbase negotiated with the agency to reduce the scope of the information it was requesting, which was then approved by the court.
“In the current matter, Kraken is arguing against compliance by pointing to the new statutory language as well as the outcome of the Coinbase matter,” Fuller said.
Fuller continued and pointed out the following issue:
“This approach seems directed at testing the meaning of the new statutory change, which many believe was the result of the Coinbase enforcement litigation.”
Stay tuned for more news from the crypto space, and make sure to check out the full article posted by the online publication mentioned above.
Why this matters
This cryptocurrency story adds another data point to the current market tape and is useful when read alongside nearby source coverage.
Original source
Read on CryptoGazetteRelated market context
Trump to meet Coinbase, Ripple and crypto leaders as CLARITY Act odds collapse to 10%
President Donald Trump and the heads of the SEC and CFTC are expected to meet crypto and prediction-market executives at the White...
Kraken parent Payward posts $508 million in Q2 adjusted revenue as growth broadens beyond crypto trading
Kraken parent Payward posted $508M in Q2 adjusted revenue, up 17%, as funded accounts grew 42% to 6.6M and volume fell 13% to $310...
Trump to Host Coinbase, Ripple, Kraken at White House Aug. 19
President Donald Trump is expected to host Coinbase, Ripple and other crypto and prediction-market executives at the White House o...
A Bitcoin treasury with $67 million in BTC has just $5,397 in cash and needs money immediately
Bitcoin treasury holder CIMG Inc. said in its Aug. 13 quarterly filing that it needs to raise capital immediately, even though it...
Bitcoin’s ETF rebound just lost 38% of its gains in four sessions as BTC fell below $63,000
Morgan Stanley’s Bitcoin Trust and Grayscale’s Bitcoin Mini Trust ETF were the only US spot Bitcoin funds to attract capital on Au...
Pump.fun 2.0: The Meme-Coin Casino Refuses to Die
BONK is a useful example of that earlier era. Launched on Solana in December 2022, the token emerged as a community-driven project...