US tax authorities are cracking down on crypto tax evaders

Hundreds of people Cryptocurrency– related issues are concentrated in the section Criminal investigation of Internal Revenue Service (IRS). Most of the matter has to do with taxes.

More and more crypto tax matters

The IRS is the United States Federal Tax Administration. Earlier, they mainly dealt with money laundering crimes. A very large area nowadays Crypto tax matters treated by the IRS.

According to division president Jim Lee, many of these matters will be made public soon.

Like it reported Some of the most common cases are related, according to Bloomberg On the way down, or converting crypto to fiat currency. Also, crypto-based wages are often not reported.

“In the last three years, I’ve really seen a change,” the researcher said. Tax cases now account for half of what was once the majority of cases involving money laundering.

Crypto is often associated with criminal activities, such as frauds and Ransomware. However, due to forensics, money laundering through crypto is less common Blockchain Companies like Chainalysis are developing more sophisticated tools to detect criminal transactions.

Crypto is less money laundered than traditional currencies

The Treasury Department has also acknowledged that crypto money laundering, while a problem, has far less impact than fiat money laundering at this time.

The use of crypto is becoming easier and easier, thus more and more transactions are done through crypto. With on-chain transactions, it’s easier for the government to see who’s getting what money.

However, Lee said his department can effectively monitor any crypto transaction. The division’s annual report, released on Thursday, listed the most successful recoveries this year.

According to Lee, the sector has captured a total of $7 billion in crypto since the start of fiscal year 2022.

Regulators are wary of crypto tools that attempt to improve the transaction privacy of crypto owners.

One of them Crypto mix Tornado Cash, about it often Crypto news can read In August, Tornado Cash was sanctioned by the Treasury Department for being used for criminal activities.