IRS Seeks Collaboration With Crypto Companies To Combat Financial Crime

The IRS wants to collaborate with crypto companies to combat financial crime, a special agent from the agency told the Wall Street Journal. He told the WSJ that a symbiotic relationship was the intended outcome.

The Internal Revenue Service (IRS) of the United States is looking to collaborate with cryptocurrency businesses to combat crime in the sector. The senior IRS law enforcer reportedly told The Wall Street Journal that cryptocurrencies were here to stay and that the agency would want to collaborate with the companies involved.

According to Thomas Fattorusso, a special agent in charge of the IRS-New CI’s York field office, the IRS’s criminal investigations division is hiring hundreds of new employees. We can’t be opposed to the technology, said Fattorusso, who did not harbor animosity toward the asset class, and we have to accept it.

He also mentioned the growth in legitimacy and sophistication of the asset class. As a result, he wants to work with crypto companies to develop a mutually beneficial relationship.

That’s something that we’re always working toward. I can’t say whether we’re receiving that or not, but that’s always the end goal, to have those partnerships…more of a symbiotic relationship. It helps them in their legitimacy. This is a new industry for everybody, and we’re still trying to feel our way around it. The companies are feeling their way around it.

Tech-Savvy Hires To Benefit Agency’s Crypto Operations

Additionally, Fattorusso expressed optimism about the agency’s ability to achieve that goal by adding younger, tech-savvy employees. The agency, stepping up its crypto-related operations, would undoubtedly benefit from this.

The IRS recently announced new crypto reporting guidelines for the tax year 2022. The need for taxpayers to disclose NFTs is one of the most significant changes. Also indicated in the form 1040 draught was the exclusion of reporting requirements for cryptocurrency purchases made via PayPal and Venmo.

NFTs Are Now Required To Be Report On Tax Forms

For the tax year 2022, the IRS unveiled a new draft of its crypto reporting regulations. Taxpayers now need to report NFTs, one of the most significant changes. Additionally, the form 1040 draught said that cryptocurrency purchases conducted via PayPal and Venmo would not require reporting.

Over the years, the IRS has altered tax reporting for cryptocurrencies numerous times. It is developing a coherent set of rules for the asset class.

Regarding the investigation of crypto-related offenses, the IRS is also not taking a back seat. A September 2022 court judgment gave the IRS the right to pursue anybody who failed to pay their crypto taxes. The summons for John Doe concerned the SFOX broker’s crypto transaction data. A series of similar commands might begin with this one.

Related Reading | A Year Of Setbacks For Bitcoin And Ethereum In 2022

Like other national authorities, it is evident that the IRS is stepping up efforts to regulate the cryptocurrency sector. Positively, all of these authorities support the operation of crypto companies as long as they do it legally.

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