IRS reveals hundreds of cryptocurrency cases as investigations widen

The IRS Criminal Investigation Division is developing hundreds of crypto-related cases. Its head, Jim Li, said, Bloomberg Tax reports.

The cases concern transactions involving the exchange of digital assets for fiat, as well as concealment of income from cryptocurrency transactions.

Details of some of them are expected to be disclosed to the public soon.

“Over the past three years I have really seen a shift in investigations in the digital assets space,” Li said.

He added that previously most cases were related to money laundering, but now half of them relate to tax evaders.

The IRS also said it plans a “significant” expansion of the agency’s staff by the end of the financial year.

As reported in September, the court allowed the IRS to issue summons to individuals to appear before the agency, who do not report and do not pay taxes on crypto transactions. The first summons was issued to M.Y. Safra Bank of New York, which provides services to the cryptocurrency broker and the Bitcoin exchange SFOX.

In March the U.S. Treasury proposed a proposal to extend to cryptocurrencies the requirement to inform the tax authorities about foreign accounts with assets over $50,000.

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