IRS to Issue a Summons on M.Y. Safra Bank

The U.S. Internal Revenue Service (IRS) has been granted the power to issue a so-called "John Doe" summons to M.Y. Safra Bank, allowing the tax agency to obtain data on customers of the bank's partner SFOX, a crypto prime broker. These customers may not have reported their crypto transactions on tax returns.

M.Y. Safra Bank partnered with SFOX in 2019 and offers SFOX users access to cash-deposit bank accounts. The IRS has identified at least ten SFOX users who failed to report their crypto transactions as required by law.