Anticipated Rise in Crypto Crimes Prompts IRS to Enhance Investigations
The United States Internal Revenue Service (IRS) is gearing up for a surge in crypto crimes in 2024, according to the agency’s criminal investigation chief Guy Ficco. In an interview with CNBC at the Chainalysis Links event in New York, Ficco highlighted the anticipated increase in “Title 26 crypto cases” this year.
Title 26 of the United States Code specifically addresses tax evasion, which involves the deliberate underpayment or non-payment of taxes through illegal means. Ficco noted that while cryptocurrencies have been used for various financial crimes in the past, the IRS is now seeing a rise in “pure crypto tax crimes,” such as not reporting income generated from crypto sales or hiding the true basis of crypto assets.
To combat these crimes, the IRS has partnered with Chainalysis and other law enforcement agencies to enhance its investigative efforts. Ficco emphasized the importance of using specialized tools to track cryptocurrency transactions, as traditional methods may not be sufficient in the digital asset space.
The IRS has also become more aggressive in investigating cases of U.S. residents who have failed to report their crypto taxes or have provided false information on their tax returns. This stance was exemplified by the recent indictment of a Texas citizen for filing false tax returns on over $4 million worth of Bitcoin gains.
The issue of cryptocurrency taxes is not unique to the United States, as regulators worldwide are working to refine taxation efforts for digital currencies. Japan’s ruling party recently called for immediate crypto tax reforms, while South Korea’s Gyeonggi province successfully recovered $4.6 million in unpaid taxes from crypto tax evaders earlier this year.
As the crypto industry continues to evolve, it is clear that regulators are ramping up their efforts to ensure compliance and combat financial crimes in the digital asset space. Stay updated on the latest developments in the crypto world by following us on Google News.
