IRS: About half of digital asset-related investigations in the past year involved tax evasion

Jim Lee, head of the IRS Criminal Investigation Division, said on a conference call on Monday that compared with three years ago when the vast majority of cryptocurrency investigations (more than 90%) involved money laundering, about half of digital asset investigations in the past year involved money laundering. Tax evasion problem. Its investigation covers the period from October 1, 2022 to September 30 this year, and involves issues such as taxpayers’ failure to declare capital gains or income from mining activities and deliberately concealing crypto asset holdings. Since the 2019 tax year, the IRS has required individuals to disclose their cryptocurrency transactions in an effort to combat tax evasion using digital assets. (Bloomberg)