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RegExp("[?&]notifications=1(&|#|$)");"desktop"===y&&i&&b.test(window.location.search)&&(i.checked=!0)};be("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat(Vn)),notifLabel:document.querySelector(".".concat($n))};t.notifDropdown&&ro(e,t)}))}()}};]]>Vismaya VSun, Sep 14, 2025, 5:01 PM 6 min readThe Internal Revenue Service has steadily widened its crypto surveillance capabilities since 2017, moving from narrow probes of individual traders to sweeping requests for user records at major exchanges and crypto companies.Armed with “John Doe summonses” and increasingly sophisticated blockchain analytics, the agency is now able to trace crypto transactions in real-time, according to legal experts and government filings."Initially, the IRS targeted a narrower group of individuals based on specific transaction thresholds," David Klasing, a dual-certified tax attorney, and CPA specializing in crypto taxation, told Decrypt. "However, recent cases indicate a broader approach aimed at identifying tax non-compliance across multiple crypto exchanges."Major exchanges and platforms, including Coinbase, Kraken, Poloniex, and Circle, were among those targeted initially, before the enforcement spread across the sector.Coinbase faced its first test when the IRS issued a summons in 2016 for 14,000 accounts, which was later pared back in court.The enforcement push has generated $3.5 billion in crypto seizures during fiscal year 2021, constituting 93% of the IRS's total asset seizures that year, according to the agency's Criminal Investigation Division. In 2021, the agency secured court approval for similar John Doe summonses targeting Kraken users who transacted $20,000 or more between 2017 and 2020, Circle customers who traded similar amounts from 2016 to 2020,  and users of Poloniex, the exchange previously owned by Circle.By June 2023, the IRS had opened 216 examinations and sent nearly 15,000 "soft letters" to crypto users identified through exchange data, Treasury Inspector General for Tax Administration (TIGTA) reported in July 2024, according to Klasing.The attorney explained that the IRS must meet three specific legal thresholds before courts approve John Doe summonses, which demonstrates investigation of "an ascertainable group or class of persons," establishing "reasonable basis for believing noncompliance with tax laws," and proving that "information is not readily available from other sources."However, these requirements provide limited protection for crypto users, as courts require only "minimal" justification and "the statute does not require the IRS to show that each person in the ascertainable group violated the law," Klasing added.Coinbase Urges Supreme Court to End IRS Surveillance of Crypto Users on ExchangesTerms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,615.28 +30.99 (+0.47%)Dow 3045,883.45 +49.23 (+0.11%)Nasdaq22,348.75 +207.65 (+0.94%)Russell 20002,405.13 +8.07 (+0.34%)VIX15.69 +0.93 (+6.30%)Gold3,717.40 -1.60 (-0.04%)PortfolioSign in to access your portfolioSign inTop gainersUUUU Energy Fuels Inc. 13.82 +1.89 (+15.84%)OKLO Oklo Inc. 95.68 +12.97 (+15.68%)FIGR Figure Technology Solutions, Inc. 37.33 +4.83 (+14.86%)RZLV Rezolve AI PLC 7.72 +0.96 (+14.20%)DGNX Diginex Limited 10.50 +1.10 (+11.70%)Top losersMENS Jyong Biotech Ltd. 51.82 -9.68 (-15.74%)LRN Stride, Inc. 139.76 -18.60 (-11.75%)ABTC American Bitcoin Corp 7.08 -0.81 (-10.33%)RNA Avidity Biosciences, Inc. 40.22 -4.52 (-10.10%)RELY Remitly Global, Inc. 16.67 -1.49 (-8.20%)Most activeOPEN Opendoor Technologies Inc. 9.50 +0.43 (+4.69%)TSLA Tesla, Inc. 410.04 +14.10 (+3.56%)NVDA NVIDIA Corporation 177.75 -0.07 (-0.04%)SNAP Snap Inc. 7.46 +0.12 (+1.63%)GRAB Grab Holdings Limited 6.14 +0.14 (+2.33%)Earnings eventsMy earnings eventsEarnings eventsTrending tickersGOOG Alphabet Inc. 251.76 +10.38 (+4.30%)OKLO Oklo Inc. 95.68 +12.97 (+15.68%)GOOGL Alphabet Inc. 251.61 +10.81 (+4.49%)UBER Uber Technologies, Inc. 98.85 +2.96 (+3.09%)ASML ASML Holding N.V. 867.30 +53.43 (+6.56%)Top economic events