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IRS Seizing Crypto Assets to Pay Off Tax Debts, Official Says

May 12, 2021, 3:54 PM

The IRS can seize people’s cryptocurrency assets to pay off past-due tax debts, an agency official said Wednesday.

The agency said in a 2014 notice that cryptocurrency is property for tax purposes. As such, it can be seized like other types of property, said Robert Wearing, deputy associate chief counsel (Procedure & Administration) at the IRS.

  • “Bottom line: The IRS will seize that property and will attempt to follow its usual procedures to sell it and use it to satisfy collection,” he said at a virtual conference hosted by the American Bar Association’s tax section.
  • Wearing noted that both ...