The United States Internal Revenue Service (IRS) is gearing up for a surge in cryptocurrency-related tax evasion cases this year, as the tax filing deadline of April 15 approaches. Guy Ficco, the IRS criminal investigation chief, highlighted a shift in the pattern of crypto usage in financial crimes, with a notable increase in cases involving “pure crypto tax crimes.”
These tax crimes include not reporting income from cryptocurrency transactions or hiding the true basis of crypto assets. Ficco emphasized that the IRS is specifically focusing on violations of Title 26 of the tax code, which deals with individuals who willfully avoid taxes by falsifying or hiding information in their financial reports.
To enhance its tracking and prosecution of crypto-related tax offenses, the IRS has partnered with blockchain analytics firm Chainalysis and other firms. Ficco explained that these partnerships provide essential tools and applications for special agents to track and follow cryptocurrency transactions.
Ficco also provided guidance on properly reporting taxes to avoid legal issues, stating that individuals should calculate the gain from selling an asset by subtracting the acquisition cost from the selling price. With the tax submission deadline looming, US taxpayers involved in cryptocurrency transactions are advised to ensure full transparency to avoid potential legal consequences.
In other regulatory news, the Uniswap decentralized exchange has received a Wells notice from the SEC, indicating potential enforcement actions against the platform. Stay tuned for more updates on cryptocurrency regulations and tax compliance.
