The IRS is Gunning for Crypto in 2023 – Vote Accordingly
As you’re going to vote today, and keeping in mind how we told you the midterms will have real consequences for the crypto community, keep this in mind as well.
The IRS is going to use all that new funding they got this year to set its sights on the crypto industry, Cointelegraph reports.
[IRS] division chief Jim Lee said they are preparing “hundreds” of crypto-involved cases, many of which will soon be available to the public.
Lee said in the last three years, there has been a major shift in digital asset investigations conducted by the IRS. Previously these investigations were mostly money-laundering related, whereas now tax-related cases make up nearly half.
This includes what is often called “off-ramping” transactions where digital assets are exchanged for a fiat currency, along with not reporting crypto payments.
In a different report released by the agency on Nov. 3, the IRS reported that in 2022 the 2,077 special agents of the division spent nearly 70% of their time investigating tax-related crimes like tax evasion and tax fraud. While the other 30% was spent on money laundering and drug trafficking cases.
This comes after the IRS introduced a broader “Digital Assets” category ahead of the upcoming tax season. It grouped cryptocurrencies, stablecoins and nonfungible tokens (NFTs) all together under a new “Digital Asset” category.
As decentralized financial technologies and assets become more mainstream, regulators are reacting, therefore enforcing more reporting requirements.
There’s a reason that Election Day on the Tuesday after the first Monday in November is about as far away on the calendar as it can get from Tax Day on April 15. Vote with Tax Day and its consequences in mind.