The IRS is Expecting More Crypto Tax Cases
A high-ranking official at the Internal Revenue Service (IRS) is predicting an increase in cryptocurrency-related tax violations, specifically cases involving non-disclosure of income from trading digital assets.
Increasing Cases of Crypto Tax Violations
- The IRS Chief of Criminal Investigation, Guy Ficco, highlighted the surge in crypto tax crimes in recent times.
- Ficco mentioned that violations of Title 26, federal income tax laws related to cryptocurrencies, are becoming more common.
- This includes instances of not reporting income from crypto sales or concealing the true basis of crypto assets.
- Ficco anticipates a growing number of charged Title 26 crypto cases in the upcoming year.
The Role of Public-Private Partnerships
- Both the public and private sectors play a crucial role in tracing crypto crimes.
- Private companies like Chainalysis provide essential tools and expertise to track crypto asset ownership.
- These partnerships are vital for uncovering illicit activities in the crypto space.
- IRS special agents leverage the support of companies like Chainalysis to investigate cases involving obscured ownership of crypto assets.
Collaboration is Key
- Ficco emphasized the importance of collaboration between law enforcement agencies and private entities to combat crypto-related crimes effectively.
- While IRS agents possess accounting skills, specialized tools and applications from companies like Chainalysis are crucial for tracing crypto transactions.
- These tools enable agents to determine the legality of financial activities in the crypto realm.
Hot Take: Brace Yourself for More Crypto Tax Cases and Collaborate for a Safer Crypto Environment
A high-ranking member of the Internal Revenue Service (IRS) is anticipating an increase in crypto tax cases due to the rise in tax violations. Public-private partnerships are crucial in tracking crypto crimes, emphasizing the significance of collaboration in ensuring a safer crypto ecosystem.
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