IRS representatives met with tax authorities from the U.K., Australia, Canada, and the Netherlands. Together, they identified “dozens” of potential cryptocurrency tax evaders and cyber criminals. The international cabal is the Joint Chiefs of Global Tax Enforcement, and it wants to curb cross-border money-laundering and tax crime.
The IRS Can Now See “Who is Moving the Money and Where it’s Going”
Bound by common goals, the group shares tools, data, and strategies to catch tax cheats and fraudsters. Ryan Korner, an IRS criminal investigation agent, recently told reporters that the agency now has new “tools in place” that allow the joint chiefs to see “who is moving the money and where it’s going.”
In a statement, the international tax enforcement task force explained:
“Tax fraud is not a new crime, but the sophistication with which criminals commit tax fraud has significantly increased through cyber-related activities in recent years. Data breaches, intrusions, takeovers and compromises are the new tools that criminals use to commit tax crimes.”
IRS on the Hunt for Delinquent Crypto Taxes and Token Money-Laundering Operations
News of the task force comes in the wake of Revenue Ruling 24-2019, which addressed several cryptocurrency tax issues involving forks, charitable giving, and calculations. Additionally, earlier in the year, the IRS sent over 10,000 letters to people suspected of crypto-related tax discrepancies.
Right now, the IRS is hyper-focused on cryptocurrency issues. It’s hired experts, formed task forces, and is actively working with other countries to identify and audit token investors. If you haven’t yet reported cryptocurrency gains, the time to do so was yesterday.
Contact the IRS about Crypto Tax Oversights Before They Contact You
It’s infinitely better to disclose crypto filing omissions to the IRS before they contact you. Moreover, since everyone is just starting to wrap their regulatory heads around token tax issues, authorities are more likely to forgive taxpayers that make a good-faith effort to correct past mistakes. The longer you wait, the less friendly they’ll be.
Connect with a Cryptocurrency Tax Lawyer
The Gordon Law Group regularly helps individuals and businesses with cryptocurrency portfolios. Whether you need to file cryptocurrency taxes or the IRS is auditing you, our team is here to help.
We know how to negotiate the best possible settlement, and in nearly all cases, our clients walk away smiling and paying much less than they imagined.
Let’s talk. We’ll listen to your situation and lay out your options.