IRS forms a new team to track down encryption evaders


The US Internal Revenue Service (IRS) has assembled a team of 10 investigators for international crime investigations and to find tax evaders using cryptocurrency, Bloomberg reports on Thursday 8 February.

The head of the IRS Don Fort criminal investigation division said that the team will work with international crime agencies to investigate unlicensed trade as well:

"Bitcoin and other cryptocurrencies can be used in the same way as foreign bank accounts to facilitate tax evasion."

According to Fort, the attention of the group for now concerns the way in which the crypto users change their fiat currency into a crypto.

"We know you want to get your money at some point."

In March 2014, IRS began issuing cryptocurrency taxation guidelines, which treated it as a property that had capital gains or losses for tax purposes. However, only 802 people respected their cryptocurrency gains or losses for their taxes in 2015.

IRS this year has faced some obstacles trying to gain access through a court order to user information on Coinbase cryptography exchange. Their original record request of over 500,000 users was rejected by the courts and reduced to only 14,000 users who reportedly had a trading activity of over $ 20,000.

Coinbase has seen their partial victory as a precedent for relationships between government agencies that enforce fees and encrypted exchanges that are committed to protecting users' privacy.

A Cointelegraph expert blog published in December 2017 highlighted the possibility of a tax amnesty for those who have not reported gains from the acquisition of digital currency, similar to an IRS revenue recording program from offshore accounts not disclosed.

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