USA revenue “We expect to see a lot more tax evasion crimes involving cryptocurrencies this year,” Guy Ficco, head of crimefighting, told CNBC at the Chainalytic Links event.
The IRS investigation director said: CNBC On Saturday, he revealed that more “pure cryptocurrency tax crimes” had been discovered. Previously, illegal use of cryptocurrencies was mainly associated with larger frauds such as fraud and embezzlement.
“This may lead to not reporting income generated purely from cryptocurrency sales, and may hide the true basis of the cryptocurrency,” Ficco said.
According to IRS officials, the agency is expected to become more active in prosecuting cryptocurrency-related tax evasion as more cases are expected to emerge this year and in the future.
To track down cryptocurrency tax delinquents, the IRS is working with several partners, including blockchain analytics firm Chainalytic. “Our IRS special agents are phenomenal at tracking and tracing money, but they need some of the tools and applications they need when starting an investigation in the cryptocurrency world by obfuscating actual ownership,” Ficco said. He added that the IRS is where help comes in. Companies like Chainalysis.
The tax filing deadline for U.S. taxpayers is April 15.
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About the author
Danny Park is The Block’s East Asia reporter, writing about topics including Web3 development and cryptocurrency regulation in the region. He previously worked as a reporter for Forkast.News, where he actively covered the fall of Terra-Luna and FTX. Based in Seoul, Danny previously produced written and video content for media companies in Korea, Hong Kong and China. He holds a Bachelor’s degree in Journalism and Business Marketing from the University of Hong Kong.