IRS Seeks Court Approval to Identify Kraken Crypto Customers
The Internal Revenue Service has filed a court document seeking permission to enforce a summons for information against Kraken and its subsidiaries.
The IRS filed a court petition to enforce its summons on Thursday, with the filing going live just minutes after Kraken announced it would settle Securities and Exchange Commission charges it offered unregistered securities through its staking-as-a-service program.
The IRS said it first issued a summons in 2021, but Kraken has failed to comply.
"Despite discussions between the parties, Payward Ventures Inc. & Subsidiaries has failed to comply with the summons and has not produced the books, records, papers, and other data demanded in the summons. Payward Ventures Inc. & Subsidiaries’ failure to comply with the summons continues to this date," the IRS said.
According to the petition, "the IRS is conducting an investigation to determine the identity and correct federal income tax liability of U.S. persons who conducted transactions in cryptocurrency for the years ended December 31, 2016, 2017, 2018, 2019, and 2020."
Read more: Kraken to Shut Crypto-Staking Service, Pay $30M Fine in SEC Settlement
UPDATE (Feb. 9, 20:53 UTC): Added information on IRS's investigation.