IRS strengthens efforts to prevent cryptocurrency-related tax evasion

Tax evasion has emerged as an important area of ​​focus in cryptocurrency investigations, according to a report from the Internal Revenue Service’s (IRS) Criminal Investigation Division. More than half of the surveys conducted last financial year were related to tax issues.
This news coincides with the IRS actively seeking input from stakeholders on its future framework centered around cryptocurrencies.
Cryptocurrency tax crimes soar
According to the report, more than 90% of cryptocurrency investigations conducted three years ago were primarily focused on money laundering. However, tax-related issues accounted for about half of digital asset surveys in the previous fiscal year, which began on October 1, 2022 and ended on September 30, 2023.
Therefore, the IRS is stepping up efforts to combat cryptocurrency tax fraud. The agency’s criminal investigation unit reported an increase in the number of investigations into digital asset reports in its annual report.
The newspaper noted that the department opened at least 2,676 cases in fiscal year 2023. They identified more than $37 billion in transactions involving financial and tax crimes.

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