Is it time for crypto users to switch up?
The U.S. Internal Revenue Service has launched a full investigation with cryptocurrency, targeting tax fraud and money laundering schemes. With people finding new ways to beat the system during the pandemic and the job market still open, the Feds will eventually need their piece of the pizza.
IRS criminal investigation chief Jim Lee said, “I expect a trend of crypto seizures to continue as we move forward into fiscal year 2022. We’re seeing crypto involved in a number of our crimes as we move forward.”
During 2021 alone, the IRS seized more than $3.5 billion worth of cryptocurrencies, which accounted for 93% of all assists seized by tax enforcement. While it’s being aimed at investigating criminal activities like wire fraud, money laundering, distribution of illegal narcotics and tax fraud; this happens in follow-up to their major Bitcoin seizure over the last year.
This all dates to a former Microsoft software developer, who used cryptocurrency to hide $10 million he embezzled from the company. Knowing that this is possible, the criminal investigation unit of the IRS has prioritized ways of unraveling cyber-financial criminal schemes.
Through help with Congress approval and a law signed just last Monday by President Joe Biden, expect major changes to happen to everything related to cryptocurrency. A new data center in Northern Virginia is expected to open in early 2022, which will help give tax authorities more visibility into virtual currency trades.
Biden’s Build Back Better plan is set to see a vote on Thursday, which will put $80 million in funding for the training and the development of the Virginia agency launching in a few weeks.
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