The IRS is stepping up its efforts to combat tax evasion related to cryptocurrencies as the tax filing deadline approaches. In this endeavor, the IRS is relying on the assistance of firms such as Chainalysis, which provide tools for tracking crypto asset ownership and transactions.
At the recent Chainalysis Links event in New York, IRS Criminal Investigation Chief Guy Ficco announced that the IRS is intensifying its focus on cryptocurrency-related tax evasion. With the tax season in full swing, Ficco highlighted the expected increase in tax fraud cases involving inadequate reporting of cryptocurrency transactions. This shift from traditional financial crimes to explicit tax violations represents a significant change in the nature of crypto-related offenses.
In a CNF YouTube video discussion, Ficco further explained the IRS’s advanced capability to monitor and prosecute these crimes. This increased scrutiny is made possible through partnerships with blockchain analytics companies like Chainalysis. Ficco emphasized the importance of compliance, urging taxpayers to declare and appropriately tax all profits from cryptocurrency sales to avoid potential legal consequences.
Ficco also stressed the critical role of public-private collaborations in addressing crypto-related crimes. Companies like Chainalysis are instrumental in providing essential tools and expertise to trace crypto asset ownership and analyze transaction patterns. According to Ficco, Chainalysis and other partners have been invaluable in assisting law enforcement agencies in combating crypto crimes.
Furthermore, Ficco highlighted the unique skill set within his team, with IRS special agents, most of whom hold accounting degrees, being particularly adept at following the money trail. However, the tools and applications provided by their partners are essential for investigating crypto transactions, especially those designed to conceal true ownership.
Despite experiencing a 10.02% decline over the previous week, Ethereum (ETH) is currently trading at $3,258, reflecting a 7.41% increase over the past day. As previously reported, this volatility underscores the importance of robust tax strategies and accurate reporting for U.S. residents managing portfolios that include Ethereum, Bitcoin, and Litecoin.
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