On Sept. 23, 2022, a U.S. District Court judge approved an IRS John Doe summons served on a New York-based bank seeking account records, including account opening documents and records of deposits, withdrawals, transfers and wires, of clients who used sFOX for cryptocurrency services. The summons was issued in connection with partnered services the bank offered to sFOX clients granting customers access to FDIC-backed cash deposit accounts. sFOX users were able to use their funds at the bank directly to buy and sell digital assets on the sFOX platform. The IRS expects the information will identify sFOX users who may have underreported their tax obligations.
Read the alert.