IRS sees crypto seizures totalling billions of {dollars} in 2022

The United States Internal Revenue Service seized $3.5bn value of cryptocurrencies throughout fiscal yr 2021 – a determine that accounted for 93 p.c of all of the property seized by tax enforcement that yr, in accordance with an IRS report printed Thursday.

By Bloomberg

The Internal Revenue Service may seize cryptocurrency valued at billions of {dollars} that’s linked to tax fraud and different crimes within the coming yr, in accordance with a key company official.

The IRS seized $3.5 billion value of cryptocurrencies throughout fiscal yr 2021, a determine that accounted for 93% of all of the property seized by tax enforcement that yr, in accordance with an IRS legal investigation annual report printed Thursday.

“I expect a trend of crypto seizures to continue as we move forward into fiscal year ‘22,” IRS Criminal Investigation Chief Jim Lee stated on a name with reporters. “We’re seeing crypto involved in a number of our crimes as we move forward.”

In the previous yr, the IRS’s legal unit seized billions of {dollars} value of Bitcoin and different digital currencies, together with $1 billion stolen from the Silk Road, a web-based Bitcoin alternate that was shut down in 2013. The unit additionally prosecuted a former Microsoft Corp. software program developer who used cryptocurrency to cover $10 million he embezzled from the corporate.

Congress lately granted the IRS extra capability to surveil cryptocurrency transactions within the infrastructure package deal President Joe Biden signed into regulation on Monday. That regulation would require crypto brokers to trace and report transactions to the IRS in an effort to present tax authorities extra visibility into digital foreign money trades.

The company may additionally profit from an extra $80 billion in funding that Democrats are proposing in Biden’s Build Back Better plan, which may get a vote within the House as quickly as Thursday. Lee stated that cash is desperately wanted in his unit to rent extra 250 to 300 extra particular brokers, in addition to put money into techniques to establish and monitor cyber crimes.

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