The tax collection agency of the United States is doubling down on tackling cryptocurrency tax evasion.
The Internal Revenue Service (IRS) Criminal Investigation division said it is preparing “hundreds” of cryptocurrency tax evasion cases, according to chief Jim Lee.
Many of these cases concern “off-ramping,” in which investors have failed to declare exchanges of crypto into fiat currency. Other cases involve individuals receiving payment in cryptocurrency then neglecting to report the income.
Lee said that investigations surrounding digital assets have become much more prominent over the past three years. Whereas most cases previously concerned money laundering, cases of crypto tax evasion now comprise nearly half the total.
To account for this growing proportion, the agency established the Office of Cyber and Forensic Services last year. This consolidated investigative units for cybercrime with digital assets, as…
