Circle informs customers of IRS investigation into users with annual transaction volume exceeding $20,000

Many digital currency advocates have reported that Circle Internet Financial has contacted its clients regarding receipt of subpoenas from the U.S. Internal Revenue Service (IRS). Circle said it is obligated to submit records of U.S. taxpayers who engaged in transactions of at least $20,000 each year between 2016 and 2020. Circle has been informing its U.S. customers via email that it intends to comply with the IRS subpoena. The subpoena was issued on April 9, 2021, against Circle and its affiliated subsidiaries. According to the Circle email, the IRS is seeking data from customers who made transactions of $20,000 or more in any year between 2016 and 2020.