{"id":8298,"date":"2022-11-04T12:14:56","date_gmt":"2022-11-04T12:14:56","guid":{"rendered":"http:\/\/cryptoheretostay.com\/?p=8298"},"modified":"2022-11-04T12:14:56","modified_gmt":"2022-11-04T12:14:56","slug":"irs-prepares-for-an-increase-in-crypto-cases-in-the-upcoming-tax-season","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=8298","title":{"rendered":"IRS prepares for an increase in crypto cases in the upcoming tax season"},"content":{"rendered":"<script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script>\n<p>The United States Internal Revenue Service (IRS) criminal investigation division is ramping up for tax season with its sights set on the crypto community.<\/p>\n<p>According to a report from Bloomberg Law, the division chief Jim Lee said they are preparing \u201chundreds\u201d of crypto-involved cases, many of which will soon be available to the public.<\/p>\n<p>Lee said in the last three years, there has been a major shift in digital asset investigations conducted by the IRS. Previously these investigations were mostly money-laundering related, whereas now tax-related cases make up nearly half.<\/p>\n<p>This includes what is often called \u201coff-ramping\u201d transactions where digital assets are exchanged for a fiat currency, along with not reporting crypto payments.<\/p>\n<p>In a different report released by the agency on Nov. 3, the IRS reported that in 2022 the 2,077 special agents of the division spent nearly 70% of their time investigating tax-related crimes like tax evasion and tax fraud. While the other 30% was spent on money laundering and drug trafficking cases.<\/p>\n<p>The division chief said following the money is nothing new and they\u2019re ready to pivot into new realms, including Web3.<\/p>\n<p>\u201cWe&#8217;ve been doing it for more than 100 years, and we&#8217;ve followed criminals into the dark web and now into the metaverse.&#8221;<\/p>\n<p>The report cited a crypto-related case as an example, which involved tracing billions of dollars in Bitcoin stolen from Bitfinex after its 2016 hack and led to the arrest of two individuals.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>74% of public agencies feel under-equipped for crypto investigations: Report<\/em><\/strong><\/p>\n<p>This comes after the IRS introduced a broader \u2018Digital Assets\u2019 category ahead of upcoming tax season. It grouped cryptocurrencies, stablecoins and nonfungible tokens (NFTs) all together under a new \u201cDigital Asset &#8221; category.<\/p>\n<p>As decentralized financial technologies and assets become more mainstream, regulators are reacting, therefore enforcing more reporting requirements.<\/p>\n<p>Binance has been actively holding workshops for global regulators to better understand digital assets and their implications. These activities increased after the exchange hired a prominent IRS cybercrime investigator to lead its anti-crime unit.<\/p>\n<p><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cointelegraph.com\/news\/irs-prepares-for-an-increase-in-crypto-cases-in-the-upcoming-tax-season\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The United States Internal Revenue Service (IRS) criminal investigation division is ramping up for tax season with its sights set on the crypto community. According to a report from Bloomberg Law, the division chief Jim Lee said they are preparing \u201chundreds\u201d of crypto-involved cases, many of which will soon be available to the public. Lee [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":8299,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[2],"tags":[],"class_list":["post-8298","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/8298","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=8298"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/8298\/revisions"}],"predecessor-version":[{"id":8300,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/8298\/revisions\/8300"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/8299"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8298"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8298"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8298"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}