IRS is Developing ‘Hundreds’ of Crypto Cases Amid Upcoming Tax Season

Bloomberg Law reports that Division Chief Jim has stated that the United States Internal Revenue Service’s criminal investigation division is currently developing hundreds of cases involving cryptocurrency. Many of these cases will soon be made public.

The IRS is preparing for the coming tax season by bringing these cases to light. In addition, the cases entail sectors around “off-ramping” transactions – a situation where digital assets are exchanged for fiat currencyIndividuals who receive crypto payments and are not reporting,

 

This report comes after United States District Judge Paul G. Gardephe granted the IRS  permission to issue ‘’John Doe’’ summons on M.Y. Safra Bank will release information on customers who may not have remitted taxes from crypto transactions.

 

IRS Commissioner Charles P. Rettig stated,  “The government’s ability to obtain third-party information about individuals who have failed to report their digital asset income remains an important tool for tax evasion.” Charles added that the John Doe summons is a step in the right direction toward ensuring that everyone pays their taxes according to what they earn.

 

Gardephe also asked SFOX, a complete cryptocurrency dealer that provides services for institutional investors in crypto, to provide information about M.Y. customers. Safra Bank will make cryptocurrency payments.

 

The IRS recently created a new category dubbed “Digital Assets” for the different categorizations of assets that are tied to the emerging blockchain industry. Digital Assets can be any representations of value that are encrypted on a cryptographically safe distributed ledger or similar technology.

 

Investors in the US will now be able see the draft bill to determine if and how to report digital assets such as crypto coins and non-fungible tokens (NFTs).

Image source: Shutterstock

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