A senior member of the Internal Revenue Service (IRS) says he expects to see more crypto cases related to tax violations.
In a new interview with CNBC, Guy Ficco, chief of the IRS’s Criminal Investigation Division, says crypto tax crimes – such as failing to report income earned from trading digital assets – are on the rise.
“What we’re seeing more and more in our current inventory now is more pure crypto tax crimes. And this would be Title 26, which covers federal income tax violations specifically related to crypto.
This could be purely the failure to report the revenue generated from the sale of crypto, it could be hiding the true basis or shielding the true basis in crypto so that’s an area where we’ve seen an uptick and I expect we’ll see will see more of this and more loaded Title 26 crypto cases here this year and in the future.”
Ficco also notes the importance of public-private sector partnerships in detecting crypto crime, as private companies, such as Chainalysis, have the expertise and tools to trace ownership of crypto assets.
“Chain Analysis, along with several other partners, has been very helpful to us and other law enforcement agencies in cracking the code. I would say the partnership aspect of that, the public-private partnership aspect of that [is important]…
My special IRS agents, for the most part, all have accounting degrees and are phenomenal at tracking and tracking money, but some of the tools, some of the applications that are needed if we’re going to do research in the crypto world, with misappropriation of real property, that’s where the expert support comes from companies like Chainalysis and others [come in] and those tools and applications allow my special agents to then use that to go further and determine whether or not a crime has been committed.
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