The Internal Revenue Service (IRS) is building “hundreds” of crypto cases to crack down on tax evasion, an official reportedly said. In the fiscal year 2022, the IRS Criminal Investigation Division seized about $7 billion in cryptocurrency, which was double the previous year’s total.
IRS Building ‘Hundreds’ of Cases to Crack Down on Tax Evasion via Cryptocurrency
The Internal Revenue Service (IRS) Criminal Investigation Division (CI), the tax authority’s law enforcement branch, is building “hundreds” of crypto cases, Bloomberg reported Thursday. Jim Lee, chief of CI, said that many cases would soon become public.
Lee said during a telephone conference that most of the cases involved cryptocurrencies being used to exchange for fiat currencies, and those who fail to report cryptocurrency payments. The CI chief noted that while most cases were related to money laundering in the past, he has “really seen a shift” in digital asset investigations in the past three years.
The Criminal Investigation Division’s annual report, released Thursday, states that the IRS “seized record amounts of data and cryptocurrency.” Lee told the news outlet that CI seized about $7 billion in cryptocurrency in the fiscal year 2022, which was double the previous fiscal year’s total. The fiscal year for CI started on October 1, 2021 and ends on September 30, 2022.
To consolidate multiple areas of investigation including cybercrime and digital assets, the tax authority created the Office of Cyber and Forensic Services last year. Lee said that it is capable of finding virtually every crypto transaction.
This report contains:
CFS is a federal agency that supports the investigation of criminal cases involving digital assets. It also assists with investigations regarding how these can be exploited to the U.S. financial and tax system.
“The CFS is constantly taking additional steps to evolve, especially as threats evolve in areas such as decentralized finance [defi]anonymously-enhanced crypto currencies, peer-to–peer payments and peer-to–peer payments. Due to relatively limited resources, the CFS focuses on cases where they can have the most significant impact,” the report adds, elaborating:
CI put emphasis on training and deployment of crypto, blockchain and open-source intelligence technology technologies in order to uncover complex cyber-financial crime schemes.
“When a foreign corrupt government official receives bribes, they often use a third party to move or launder those illegal proceeds to buy properties, cryptocurrencies, and many other assets. If the money moves into or through a country, [the] U.S. financial system, CI can trace the money,” the report further details.
Do you agree with the IRS creating hundreds of crypto cases to investigate? Comment below.
Images CreditsShutterstock. Pixabay. Wiki Commons
DisclaimerThis information is provided for educational purposes only. This article is not intended to be a solicitation or offer to sell or buy any product, service, or company. Bitcoin.com doesn’t offer investment, tax or legal advice. The author and the company are not responsible for any loss or damage caused or alleged caused by the content or use of any goods, services, or information mentioned in the article.