(NewsGlobal.com)- According to a recent report, the Internal Revenue Service (IRS) criminal investigation branch is preparing to crack down on bitcoin tax evaders in the 2018 tax season.
Jim Lee, the head of the IRS Criminal Investigation division, has said that the division is currently developing hundreds of crypto cases, many of which will soon be made public.
The agency used to concentrate its investigations on money laundering, but tax cases have experienced a significant increase and now account for nearly half of all investigations. Digital asset investigations have changed significantly during the past three years.
The main focus in these situations is how digital assets are converted into fiat money and on individuals who get payment in cryptocurrencies but fail to record that income on their taxes.
Reports show that to consolidate its digital asset investigation, cybercrime investigation, digital forensics, and physical forensics support operations into one cohesive organization, the IRS initially established the Office of Cyber and Forensic Services last year. The office can track any cryptocurrency transaction.
The agency’s Criminal Investigation section published its annual report, which included a list of its cryptocurrency accomplishments, including the conviction of Bitqyck founders Bruce Bise and Samuel Mendez for tax evasion in March 2022. The IRS stated that 2,077 special agents in the division spent about 70% of their time in 2022 looking into tax-related crimes like tax evasion and tax fraud. The remaining 30% of their time was focused on instances involving narcotics trafficking and money laundering.
According to Lee, the amount of cryptocurrency seized due to these criminal investigations in the fiscal year 2022 was over $7 billion, double the amount in the prior year.
Regulation agencies worldwide have been stepping up their reporting requirements and enforcement measures as the percentage of people claiming to hold cryptocurrency has gradually risen.
The IRS anticipates a more significant staffing rise.
I doubt it’s all for cryptocurrency fraud.