The IRS Confirms a new Wave of Cryptocurrency Audits is Coming

Tax agencies around the globe continue to crack down on cryptocurrency users. A new joint report by the IRS and other agencies confirm there are new tools being deployed to identify tax evaders, cybercriminals, and other culprits. 

For some time now, the Joint Chiefs of Global Tax Enforcement have been working together. 

The IRS Targets Crypto Traders Again

This unit consists of the IRS, as well as officials from the UK, Canada, Australia, and The Netherlands.

All of these tax agencies share one common goal” tracking down tax evaders and cybercriminals.

In the past two years, part of the focus of these investigations has shifted to the cryptocurrency industry. Particularly for the IRS, Bitcoin and altcoins have given the agency quite a few headaches. 

For the IRS’s cybercrime unit, the goal is to find out who is moving money at any given time. With cryptocurrencies and their pseudonymity, that is much easier said than done.

New tools have been put in place which were not around in the past year. 

Through these new methods, the IRS has identified a lot of cybercriminals and cryptocurrency users trying to evade taxes.

Additionally, the IRS has confirmed it will conduct additional cryptocurrency audits fairly soon.

That move doesn’t come as a surprise, as the agency sent out thousands of letters to cryptocurrency holders in the first half of 2019. 

Those letters served as a final warning of sorts to ensure traders file their taxes properly. 

What kind of repercussions wrongdoers can expect, remains up in the air. The Joint Chiefs of Global Tax Enforcement appear adamant about making a statement regarding this matter. 

Image(s): Shutterstock.com

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