BlockNews
FOLLOW ON X
  • BITCOIN
  • CRYPTO
    • ETHEREUM
    • RIPPLE XRP
    • SOLANA
    • CARDANO
    • BINANCE BNB
    • DOGECOIN
    • TRON
    • SUI
    • CHAINLINK
    • LITECOIN
  • FINANCE
  • POLITICS
  • MEMECOINS
  • NFT
  • OPINION
No Result
View All Result
BlockNews
  • BITCOIN
  • CRYPTO
    • ETHEREUM
    • RIPPLE XRP
    • SOLANA
    • CARDANO
    • BINANCE BNB
    • DOGECOIN
    • TRON
    • SUI
    • CHAINLINK
    • LITECOIN
  • FINANCE
  • POLITICS
  • MEMECOINS
  • NFT
  • OPINION
No Result
View All Result
BlockNews
Home CRYPTO

US Court Authorizes IRS to Issue Summons for Crypto Investors

BlockNews Team by BlockNews Team
September 27, 2022
in CRYPTO, INVESTING, POLITICS
Reading Time: 3 mins read
1
SHARES
19
VIEWS
Share on XShare in TelegramShare on Reddit

The Internal Revenue Service (IRS) has received a court order approving an order of records for U.S. taxpayers who fail to report and pay taxes on virtual currency transactions. The IRS Commissioner said,

“The government’s ability to obtain information from third parties about those who do not report profits from digital assets remains an important tool for spotting tax fraudsters.”

SFOX is a cryptocurrency trader and trading platform with more than 175,000 registered users. The users have traded over $12 billion in cryptocurrencies since 2015. An IRS investigation has identified at least 10 U.S. taxpayers who made crypto transactions on the SFOX platform. These taxpayers did not report the transactions to the IRS as the law requires. John Doe’s order does not identify an individual to whom the liability for the subpoena is being issued.

Taxpayers must report all gains and losses related to cryptocurrency transactions on their tax returns. According to the IRS, tax compliance has significant deficiencies, especially with cryptocurrencies. Most individuals are evading tax using cryptocurrencies.

 “…experience has shown significant deficiencies in tax compliance concerning cryptocurrencies and other digital assets.”

The Internal Revenue Service risks being embroiled in a year-long campaign. This involves collecting income tax from cryptocurrency investors after the first U.S. presidential election. Harper v. Rettig challenges the IRS’s use of the so-called John Doe summons to obtain crypto exchange trading records. 

The Board of Appeals said that taxpayers should seek information from the IRS under the U.S. Supreme Court’s 2021 Precedent CIC Services LLC v. IRS. Despite a legal injunction against taxpayers challenging tax assessments and collections, which said they had the right to sue the IRS over collection tactics.

When to Report Cryptocurrency Trades on Your Tax Return

If you buy cryptocurrency in USD and store it on the exchange where you purchased it or transfer it to your wallet, you will not have to pay taxes at the end of the year. If the only cryptocurrency-related activity this year was to purchase cryptocurrency in U.S. dollars, you are not required to report to the IRS. You can find full guidelines in the Form 1040 tax return.

Cryptocurrency Trading

The use of virtual currency as a means of exchange is taxable. This includes selling virtual currency for U.S. dollars and exchanging one virtual money for another. It involves buying Ethereum with Bitcoin and using virtual currency to pay for goods or services.

Daniel Johnson, Financial Advisor and Founder of his RE | Focus Financial Planning in Asheville, North Carolina, said, 

 “Be careful when trading large amounts. If you move in and out of different types of cryptocurrencies, you will be taxed each time you make that transaction.” 

The IRS will scrutinize cryptocurrency transactions this year and crack down on tax evaders. If a person avoided declaring cryptocurrencies taxable in the past, it might be punishable this year.

Disclaimer: BlockNews provides independent reporting on crypto, blockchain, and digital finance. All content is for informational purposes only and does not constitute financial advice. Readers should do their own research before making investment decisions. Some articles may use AI tools to assist in drafting, but every piece is reviewed and edited by our editorial team of experienced crypto writers and analysts before publication.
Tags: BlockchaincryptoWeb3
TweetShareShare
BlockNews Team

BlockNews Team

DON'T MISS THESE! HOT OFF THE PRESS

God Candle Incoming? Why Shiba Inu (SHIB) Could Shock the Market With a Huge Rally
CRYPTO

God Candle Incoming? Why Shiba Inu (SHIB) Could Shock the Market With a Huge Rally

September 7, 2025
Chainlink Price Setup Could Launch LINK to $100 — Here’s the Roadmap Traders Are Watching!
CHAINLINK

Chainlink Price Setup Could Launch LINK to $100 — Here’s the Roadmap Traders Are Watching!

September 7, 2025
From $3 to $7? Analyst Says SUI Could Double – Here’s What You Need to Know
CRYPTO

From $3 to $7? Analyst Says SUI Could Double – Here’s What You Need to Know

September 7, 2025
TRON Price Faces Bearish Pressure Despite $110M Treasury Boost – Can Bulls Fight Back?
CRYPTO

TRON Price Faces Bearish Pressure Despite $110M Treasury Boost – Can Bulls Fight Back?

September 7, 2025
Dogecoin ETF Hype Builds: Will DOGE Price Moon or Crash? Read Before It’s Too Late!
CRYPTO

Dogecoin ETF Hype Builds: Will DOGE Price Moon or Crash? Read Before It’s Too Late!

September 7, 2025
Cardano Rally Incoming? On-Chain Growth and Trader Positions Hint at a Breakout
CARDANO

Cardano Rally Incoming? On-Chain Growth and Trader Positions Hint at a Breakout

September 6, 2025
Load More

Related News

God Candle Incoming? Why Shiba Inu (SHIB) Could Shock the Market With a Huge Rally

God Candle Incoming? Why Shiba Inu (SHIB) Could Shock the Market With a Huge Rally

September 7, 2025
Chainlink Price Setup Could Launch LINK to $100 — Here’s the Roadmap Traders Are Watching!

Chainlink Price Setup Could Launch LINK to $100 — Here’s the Roadmap Traders Are Watching!

September 7, 2025
From $3 to $7? Analyst Says SUI Could Double – Here’s What You Need to Know

From $3 to $7? Analyst Says SUI Could Double – Here’s What You Need to Know

September 7, 2025
TRON Price Faces Bearish Pressure Despite $110M Treasury Boost – Can Bulls Fight Back?

TRON Price Faces Bearish Pressure Despite $110M Treasury Boost – Can Bulls Fight Back?

September 7, 2025
Dogecoin ETF Hype Builds: Will DOGE Price Moon or Crash? Read Before It’s Too Late!

Dogecoin ETF Hype Builds: Will DOGE Price Moon or Crash? Read Before It’s Too Late!

September 7, 2025
Twitter Telegram Threads

BLOCKNEWS.COM

BlockNews is your premier source for real-time cryptocurrency, blockchain, political and financial market news.

Stay ahead of the herd with BlockNews

RESOURCES

  • About Us
  • Contact Us
  • Editorial Policies
  • Terms and Conditions
  • Privacy Policy
  • Sitemap

DISCLOSURES AND POLICIES

BlockNews provides independent reporting on crypto, blockchain, and digital finance. Content is for informational purposes only and does not constitute financial advice. Sponsored material is always disclosed. By using this site, you agree to our Terms and Conditions and Privacy Policy.

© 2025 BlockNews

No Result
View All Result
  • HOME
  • BITCOIN
  • CRYPTO
    • ETHEREUM
    • RIPPLE XRP
    • SOLANA
    • CARDANO
    • BINANCE BNB
    • DOGECOIN
    • TRON
    • LITECOIN
    • CHAINLINK
    • SUI
  • MEMECOINS
  • POLITICS
  • FINANCE
  • NFT
  • DEFI
  • GUIDES

© 2025 BlockNews