The head of criminal investigations at the United States Internal Revenue Service (IRS), Guy Ficco, has shared that the agency expects to see an increase in cryptocurrency-related frauds and violations.
At the Chainalysis Links event in New York, IRS official Guy Ficco told CNBC in an interview that there will be a significant increase in cases related to cryptocurrency taxation under Title 26 next year. Ficco made these remarks just before the April 15th tax filing deadline in the United States.
Title 26 of the US Code has regulations designed to prevent people from deceitfully avoiding their tax obligations. Tax evasion generally refers to the intentional underpayment or non-payment of taxes through illicit methods. This can include misrepresenting income, overstating deductions, or concealing money and earnings in secret places like overseas accounts.
The IRS official stated that cryptocurrencies have historically been utilized primarily for illicit financial activities, including fraud, cons, and money laundering. Remarkably, he mentioned a recent increase in “straight-up crypto tax offenses” within the IRS’s observation. Such infractions are predicted to escalate as we move deeper into the year.
“Ficco commented, suggesting a possibility that this is not declaring income earned from cryptocurrency transactions or concealing the real nature of those crypto assets, an aspect I believe will see more occurrences.”
Based on Ficco’s explanation, the IRS collaborates with Chainalysis and other law enforcement units to strengthen their initiatives against crypto-related offenses. He further noted that although IRS agents excel in tracking funds, the complex nature of cryptocurrencies necessitates the employment of advanced tools.
“That’s where the experts at Chainalysis come in,” he added.
Ficco noted that the IRS has become more adversarial in examining instances where American taxpayers neglected to report crypto taxes or provided false information in prior crypto tax filings.
After a federal grand jury indicted him on February 7 for falsely reporting tax information on more than $4 million earned from Bitcoin sales, Ficco’s comments were made. A Texan named Frank Richard Ahlgren III faced these charges.
There’s growing anxiety worldwide about taxing cryptocurrencies, not just in the US. Governments around the world are working diligently to clarify taxation rules for digital currencies. The most recent push comes from Japan’s Liberal Democratic Party, who have urged the government to implement “urgent” crypto tax changes.
In February 2024, as previously reported by Crypto.news, South Korea’s Gyeonggi province implemented a new strategy to prevent crypto tax evasion. This initiative enabled authorities to recoup approximately $4.6 million in overdue taxes from delinquent payers.
Read More
- BODEN PREDICTION. BODEN cryptocurrency
- GHST PREDICTION. GHST cryptocurrency
- BETA PREDICTION. BETA cryptocurrency
- STRD PREDICTION. STRD cryptocurrency
- Mango Markets Exploiter Found Guilty Of Fraud And Manipulation
- GBP EUR PREDICTION
- MATIC PREDICTION. MATIC cryptocurrency
- LOOKS PREDICTION. LOOKS cryptocurrency
- BRN/USD
- TNSR PREDICTION. TNSR cryptocurrency
2024-04-15 14:52