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In a significant development in the cryptocurrency sector, Kraken, a leading U.S. cryptocurrency exchange, has announced it will disclose specific user data who conducted transactions over $20,000 between 2016 and 2020 to the Internal Revenue Service (IRS) in November, 2023.
This decision comes in the wake of a prolonged legal battle over crypto tax reporting that began in May 2021.
In its search for potential tax evaders, the IRS initially requested a wide range of Kraken's U.S. client records.
However, standing firm on its commitment to safeguard client privacy, Kraken resisted the sweeping demands, leading to an extended litigation process.
While the exchange managed to limit the scope of the IRS's request, the court eventually mandated Kraken to furnish details and transaction records of users who had transacted over $20,000 in any single year spanning from 2016 to 2020.
As per the court's directive, Kraken is set to provide the IRS with user details, including names, birthdates, taxpayer IDs, addresses, phone numbers, email addresses, and transaction histories for the stipulated years. This move is slated for early November 2023.
Kraken has urged its affected clients to liaise with their respective tax consultants to address any potential tax implications stemming from their cryptocurrency transactions during the specified years.
If you are using Kraken, you can leverage Kryptos to stay on top of your taxes – simply auto-sync all your transactions, analyze your portfolio and calculate your crypto taxes in minutes.
For a step-by-step guide to connect Kraken with Kryptos, check out our Kraken integration guide.
Ready to simplify your crypto taxes? Sign Up on Kryptos for free.
1. Why is Kraken sharing user data with the IRS?
Kraken is complying with a court order that mandates the disclosure of specific user data to the IRS, stemming from a legal battle that began in May 2021.
2. Which users will be affected by this disclosure?
Users who have conducted transactions exceeding $20,000 in any single year from 2016 to 2020 will have their details shared with the IRS.
3. What kind of user information will Kraken provide to the IRS?
Kraken will share names, birthdates, taxpayer IDs, addresses, phone numbers, email addresses, and transaction histories for the specified years.
4. How can affected users address potential tax implications?
Kraken advises its impacted clients to consult with tax specialists to understand and address any potential tax liabilities related to their cryptocurrency transactions during the mentioned years.
All content on Kryptos serves general informational purposes only. It's not intended to replace any professional advice from licensed accountants, attorneys, or certified financial and tax professionals. The information is completed to the best of our knowledge and we at Kryptos do not claim either correctness or accuracy of the same. Before taking any tax position / stance, you should always consider seeking independent legal, financial, taxation or other advice from the professionals. Kryptos is not liable for any loss caused from the use of, or by placing reliance on, the information on this website. Kryptos disclaims any responsibility for the accuracy or adequacy of any positions taken by you in your tax returns. Thank you for being part of our community, and we're excited to continue guiding you on your crypto journey!
Germany's recent Bitcoin sell-off has ignited discussions among crypto investors. This event has not only affected market dynamics but also highlighted the importance of crypto tax compliance.
German lawmaker and Bitcoin activist Joana Cotar highlights risks in rapid Bitcoin sell-offs and their tax consequences. Simplify compliance with our intuitive crypto tax app.
Commerzbank AG is the first full-service bank in Germany with a crypto custody license, highlighting the importance of understanding crypto tax implications.
In a significant development in the cryptocurrency sector, Kraken, a leading U.S. cryptocurrency exchange, has announced it will disclose specific user data who conducted transactions over $20,000 between 2016 and 2020 to the Internal Revenue Service (IRS) in November, 2023.
This decision comes in the wake of a prolonged legal battle over crypto tax reporting that began in May 2021.
In its search for potential tax evaders, the IRS initially requested a wide range of Kraken's U.S. client records.
However, standing firm on its commitment to safeguard client privacy, Kraken resisted the sweeping demands, leading to an extended litigation process.
While the exchange managed to limit the scope of the IRS's request, the court eventually mandated Kraken to furnish details and transaction records of users who had transacted over $20,000 in any single year spanning from 2016 to 2020.
As per the court's directive, Kraken is set to provide the IRS with user details, including names, birthdates, taxpayer IDs, addresses, phone numbers, email addresses, and transaction histories for the stipulated years. This move is slated for early November 2023.
Kraken has urged its affected clients to liaise with their respective tax consultants to address any potential tax implications stemming from their cryptocurrency transactions during the specified years.
If you are using Kraken, you can leverage Kryptos to stay on top of your taxes – simply auto-sync all your transactions, analyze your portfolio and calculate your crypto taxes in minutes.
For a step-by-step guide to connect Kraken with Kryptos, check out our Kraken integration guide.
Ready to simplify your crypto taxes? Sign Up on Kryptos for free.
1. Why is Kraken sharing user data with the IRS?
Kraken is complying with a court order that mandates the disclosure of specific user data to the IRS, stemming from a legal battle that began in May 2021.
2. Which users will be affected by this disclosure?
Users who have conducted transactions exceeding $20,000 in any single year from 2016 to 2020 will have their details shared with the IRS.
3. What kind of user information will Kraken provide to the IRS?
Kraken will share names, birthdates, taxpayer IDs, addresses, phone numbers, email addresses, and transaction histories for the specified years.
4. How can affected users address potential tax implications?
Kraken advises its impacted clients to consult with tax specialists to understand and address any potential tax liabilities related to their cryptocurrency transactions during the mentioned years.
All content on Kryptos serves general informational purposes only. It's not intended to replace any professional advice from licensed accountants, attorneys, or certified financial and tax professionals. The information is completed to the best of our knowledge and we at Kryptos do not claim either correctness or accuracy of the same. Before taking any tax position / stance, you should always consider seeking independent legal, financial, taxation or other advice from the professionals. Kryptos is not liable for any loss caused from the use of, or by placing reliance on, the information on this website. Kryptos disclaims any responsibility for the accuracy or adequacy of any positions taken by you in your tax returns. Thank you for being part of our community, and we're excited to continue guiding you on your crypto journey!
Germany's recent Bitcoin sell-off has ignited discussions among crypto investors. This event has not only affected market dynamics but also highlighted the importance of crypto tax compliance.
German lawmaker and Bitcoin activist Joana Cotar highlights risks in rapid Bitcoin sell-offs and their tax consequences. Simplify compliance with our intuitive crypto tax app.
Commerzbank AG is the first full-service bank in Germany with a crypto custody license, highlighting the importance of understanding crypto tax implications.
