IRS Can Serve John Doe Summons on Kraken Crypto Exchange
In re Tax Liabilities of John Does
- Case NameIn re Tax Liabilities of John Does
- CourtUnited States District Court for the Northern District of California
- DocketNo. 3:21-cv-02201
- JudgeSpero, Joseph C.
- Parallel Citation127 A.F.T.R.2d (RIA) 2021-19212021 WL 2314968
- Code Sections
- Subject Areas/Tax Topics
- Jurisdictions
- Tax Analysts Document Number2021-18569
- Tax Analysts Electronic Citation2021 TNTF 87-242021 TPR 19-21
In re Tax Liabilities of John Does
In re
TAX LIABILITY OF JOHN DOES.
UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF CALIFORNIA
ORDER GRANTING NARROWED PETITION
The United States has filed a petition to authorize service of an Internal Revenue Service “John Doe” summons to the cryptocurrency exchange Payward Ventures Inc. d/b/a/ Kraken (“Kraken”) and its subsidiaries under 26 U.S.C. § 7609(f), to aid in assessing the potential tax liability of Kraken users. The Court previously ordered the United States to show cause why the petition should not be denied for failure to narrowly tailor the request as required by that statute (dkt. 6), and the United States filed a response narrowing the proposed summons and further explaining its need for the information it seeks (dkt. 8).
Any further disputes as to the scope of the summons would benefit from adversarial briefing. The petition is therefore GRANTED as modified, and the United States may serve a summons consistent with its response to the Court's order to show cause, without prejudice to any argument that Kraken or its users might raise in a motion to quash.
IT IS SO ORDERED.
Dated: May 5, 2021
JOSEPH C. SPERO
Chief Magistrate Judge
- Case NameIn re Tax Liabilities of John Does
- CourtUnited States District Court for the Northern District of California
- DocketNo. 3:21-cv-02201
- JudgeSpero, Joseph C.
- Parallel Citation127 A.F.T.R.2d (RIA) 2021-19212021 WL 2314968
- Code Sections
- Subject Areas/Tax Topics
- Jurisdictions
- Tax Analysts Document Number2021-18569
- Tax Analysts Electronic Citation2021 TNTF 87-242021 TPR 19-21
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