On November 14, 2022 we posted IRS CI Had a 90.6% Conviction Rate on Prosecuted Cases of Tax Evasion & Tax Fraud, where we discussed that IRS-CI released its 2022 Annual Report on November 3, 2022.
As it relates to Crypto Currency, the report indicates that there where significant prosecutions in 2022 and identifies cryptocurrency as an area of top priority in 2023.
Following the publication, CI Chief Jim Lee made clear that the division will continue to closely scrutinize crypto transactions and
Should Consider Resolving Matters Now, Before IRS
Agents Target Them In Criminal Prosecutions.
Are you making out points out that in 2023, CI will establish the advanced collaboration and data center (ACDC) to provide centralized access the data and resources to effectively support CI's mission of the deterring tax and financial crime. ACDC will enhance CI's abilities to access, investigate, and analyze information regarding Crypto Currency (tracing, monitoring, tax basis calculating).
Bolstered by the prominent placement of reporting language on the front of Form 1040, law enforcement can be expected to bring more criminal tax cases against those who fail to disclose transactions involving digital assets.
This is a significant announcement for all companies or individuals operating in the cryptocurrency space or who have engaged in digital asset transactions.
Lee Has Announced Plans To Hire More Than 500 New
IRS Employees, Including 360 New Special Agents.
In light of the ambitious hiring plan, failure by taxpayers to report digital asset transactions is more likely to be scrutinized by the division.
The IRS has been open about its aggressive stance on enforcement, willingness to bring cases and the types of cases it is prioritizing. Now more than ever, it is imperative for companies and individuals to take steps to comply with all applicable laws and regulations and ensure they have competent counsel in the event they become the target of an investigation.
Read more at: Tax Times blog
