Kraken Ordered to Share User Data with IRS for Tax Investigation

Federal Court Orders Kraken to Share User Data with IRS in Tax Probe

Kraken, a cryptocurrency exchange, has been compelled by a federal court to share user data with the IRS as part of a tax compliance investigation. The court order requires Kraken to provide information on users who engaged in transactions exceeding $20,000 within a calendar year, including their names, birthdates, taxpayer identification numbers, addresses, phone numbers, email addresses, and various other documents. The IRS aims to examine potential tax underreporting by users who conducted cryptocurrency transactions between 2016 and 2020. While Kraken must disclose blockchain addresses and transaction hashes, requests for employment information and source of wealth were denied by the judge. This ruling follows increased regulatory scrutiny on the cryptocurrency industry in the United States.