MEXCCrypto Tax Frauds on IRS Radar Amid Market Boom
A recent update from the Internal Revenue Service (IRS) crime unit reveals that its investigation unit, which played a pivotal role in the investigation of Binance Holdings Ltd., is currently witnessing a notable uptick in cases related to cryptocurrency tax evasion. Jim Lee, the chief of the IRS’s criminal investigation division, shared this information during a press briefing held on Monday, December 4.
Are Crypto Investors Evading Taxes?
Jim Lee highlighted a significant shift in the nature of crypto-related investigations over the past three years. In the past, the majority—over 90%—of active cryptocurrency investigations primarily focused on money laundering. However, in the last year, Lee noted that approximately half of the ongoing digital asset probes are around tax-related issues.
💸 The euphoria surrounding #Bitcoin crossing $40K over the weekend (and $42K today) continues trending across #crypto platforms. And with major 2023 gains for most traders, we see rising discussions related to taxes with less than 4 weeks left in 2023. https://t.co/tWfwkguyEV pic.twitter.com/qiSx6Ot7QN
— Santiment (@santimentfeed) December 4, 2023
The investigations undertaken by the IRS criminal investigation division also encompass a spectrum of concerns. These range from instances where taxpayers neglect to report income arising from capital gains or mining activities to cases where individuals intentionally withhold information about their cryptocurrency holdings. Besides, the IRS has outlined the details of these investigations in the division’s latest annual report, which covers the period from October 1, 2022, through September 30.
Starting from the tax year 2019, the Internal Revenue Service (IRS) has mandated individuals to declare their cryptocurrency transactions. This directive is also a component of a broader initiative aimed at curbing tax evasion related to digital assets.
Regulators are taking crypto tax matters into their hands not only in the US but across the world. The United Kingdom’s tax agency, Her Majesty’s Revenue and Customs (HMRC), has issued a clear and decisive directive to users of cryptocurrency. On the other hand, Brazil is also looking to tax users for their crypto profits.
IRS Combating Crypto Crime
- FOMC Meeting Today: Where to Watch and Key Expectations for Crypto Market
- Changpeng ‘CZ’ Zhao Confirms Defamation Lawsuit Plans Against Sen Elizabeth Warren
- Pi Coin Gains Another 15% As Pi Network Joins ISO 20022 For Seamless Banking Integration
- Bitwise Solana Staking ETF (BSOL) Records $69.5M Inflows on Debut, But SOL Slips
- Trump Insider Whale Reloads $430M Long on BTC, ETH Ahead of Tomorrow’s Fed Rate Cut Decision
- Can ASTER Price Rebound 50% as Whale Activity and Bullish Pattern Align?
- Pi Network Patterns Point to More Gains Despite Manipulation Claims
- HBAR Price Poised to Hit $0.30 as Canary Capital ETF Starts Trading.
- Will Solana Price Rally to $300 as Bitwise Launches $BSOL ETF?
- XRP Price Chart Patterns Hint at 2017-Style Breakout as Evernorth Acquires $1B XRP Ahead of Nasdaq Debut
- Cardano Price Eyes 80% Rally as x402 Upgrade Sparks Hope for AI Payment Expansion
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
