Focus of IRS investigations shifts to tax evasion

Three years ago, the overwhelming majority of cryptocurrency investigations (more than 90%) were linked to money laundering. In the past year, about half of them have involved tax evasion, Bloomberg reports, citing data from the IRS.

According to Jim Li, head of the agency’s Criminal Investigation Division, there is a surge in cases related to evasion of government obligations in cryptocurrency transactions.

According to the report, the range of investigations covers a number of issues—from undeclared gains from capital gains or mining to failure to disclose digital assets.

Since the 2019 tax year, the IRS has asked individuals to report cryptocurrency transactions.

As reported, on 21 November, in a сделки с властями Binance paid $4.3 billion, and Changpeng Zhao agreed to a $50 million fine and to step down as chief executive.

U.S. Treasury Secretary Janet Yellen said that FinCEN, OFAC and the IRS had been conducting an investigation into the organization for three years.

In October, it became known that Kraken направить Налоговой службе информацию about US-based users who conducted transactions totaling more than $20 000 in the period from 2016 to 2020. The company will relevant court order.