IRS steps up prosecution of cryptocurrency tax evasion this year
Key Takeaways
- The IRS is bracing for an increase in cryptocurrency-related tax evasion cases this year.
- Guy Ficco, head of IRS Criminal Investigation, emphasized that cryptocurrencies have moved from being primarily associated with other financial crimes to being directly linked to tax evasion.
- The IRS is working with Chainalytic and other companies to improve tracking and prosecution of cryptocurrency tax crimes.
The U.S. Internal Revenue Service (IRS) is preparing for this. Cryptocurrency-related tax evasion cases are rapidly increasing, According to Guy Ficco, the agency’s director of criminal investigations.
tax return The deadline has been set for April 15.
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Highlighting the changing patterns of cryptocurrency use in financial crime, Ficco made the following important points: Increase in incidents related to “pure cryptocurrency tax crimes” Such as not reporting income from cryptocurrency trading or hiding the true basis of cryptocurrency assets.
The IRS is specifically preparing to address the following issues: Violation of Article 26 of the Tax Act; It deals with people who intentionally evade taxes by falsifying or hiding information in their financial reports. Ficco expects:
There will likely be many more Title 26 cryptocurrency claims this year and in the future.
To strengthen that effort, The IRS collaborated with blockchain analytics firm Chainalytic and several other partners. Strengthen our ability to prosecute cryptocurrency-related tax crimes. Ficco explained that this partnership provides his team of special agents with essential tools and applications to track and trace cryptocurrencies.
Ficco also shared how to properly file your taxes to avoid legal trouble.
The basic rule of thumb is that when an asset is acquired, there is a basis in the asset. Then, if you dispose of that asset, <...> The branch you sold becomes your disposal. If you buy something for $10,000 and sell it for $20,000, you have a profit of $10,000, and you have to pay taxes on it.
As tax filing deadlines approach, U.S. taxpayers engaging in cryptocurrency transactions are urged to be fully transparent with their transactions to avoid potential legal consequences.
In other regulatory news, Uniswap decentralized exchange recently received Wells Notice from the SEC, signaling potential enforcement against the platform.
With a master’s degree in Economics, Politics, and Culture in East Asia, Aaron wrote a scientific thesis analyzing the differences between Western capitalism and collective capitalism after World War II.
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