The IRS’s civil enforcement efforts on cryptocurrency transactions are “mostly indirect and negligible,” but it’s criminal investigation arm has had more success, a watchdog said in a Monday report.
The number of virtual currencies and transactions involving them has exponentially increased in recent years, and the IRS needs to create an agency-wide compliance plan to capture tax dollars from these transactions, the Treasury Inspector General for Tax Administration said in the report.
So far, IRS Criminal Investigation has used analytics tools and worked with blockchain analytics firms to go after noncompliant taxpayers. From 2018-2023, the IRS unit investigated 390 ...
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