IRS Anticipates Surge in Crypto-Related Crimes

The United States Internal Revenue Service (IRS) is bracing for a significant increase in cryptocurrency tax crimes. This was stated by the head of the agency’s criminal investigation department, Guy Ficco, in an interview with CNBC.

The statements were made ahead of the April 15 deadline for U.S. citizens to file their tax returns.

According to the official, the IRS has enhanced its capabilities to combat tax fraud and evasion involving digital assets. Ficco highlighted collaboration with Chainalysis and several other similar organizations.

The department head noted that digital assets were previously used mainly as tools for financial offenses such as fraud, scams, and money laundering. Recently, the agency has observed a sharp rise in “pure crypto tax crimes.” The official expects this trend to continue in the near future.

“This could simply be the failure to declare income from the sale of digital assets. It could be concealing the true basis of cryptocurrencies. In this latter area, I expect an increase [in cases],” he said.

Ficco mentioned the IRS’s collaboration with Chainalysis and several other similar organizations.

Back in December 2023, ForkLog reported that about half of the agency’s cryptocurrency investigations involved tax evasion cases, whereas three years ago, over 90% were related to money laundering.

In the same month, the Service named the largest cases of 2023 involving digital assets.