HomeCryptoThe IRS wants to partner with crypto companies to fight crime
The IRS wants to partner with crypto companies to fight crime
January 4, 2023
An IRS special agent told the Wall Street Journal that the agency wants to partner with cryptocurrency firms to fight financial crime. He told the WSJ the goal was a “symbiotic relationship.”‘
The US Internal Revenue Service (IRS) hopes to work with cryptocurrency companies to fight crime in the sector. The Wall Street Journal reported that top law enforcement at the IRS said “cryptocurrency was here to stay,” and as such, the agency would like to work with crypto firms.
Thomas Fattorusso, a special agent in charge of the IRS-CI’s New York office, he told the WSJ that the IRS Criminal Investigation Unit was hiring hundreds of new staff. Fattorusso was not hostile towards the asset class, stating: “We cannot be hostile to technology. We have to embrace it.
He also noted that the asset class is becoming more legitimate and sophisticated. As such, he wishes to partner with crypto firms with the goal of having a “symbiotic relationship.” He said:
“It’s something we always work on. I can’t say whether or not we’re getting it, 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 everyone. I think we’re still trying to orient ourselves. Companies are groping around.”
Fattorusso was also optimistic about the agency hiring younger, more tech-savvy staff who could help with that goal. This would certainly help the agency, which has resumed its cryptocurrency-related efforts.
NFTs now need to be reported in tax form
The IRS recently released new draft cryptocurrency reporting rules for the 2022 fiscal year. One of the most significant changes is that taxpayers must also report NFTs. The draft Form 1040 also stated that cryptocurrency purchases made through PayPal and Venmo would not need to be reported.
The IRS has made several revisions to the tax reporting related to cryptocurrencies over the years. It appears to be forming a consistent set of rules for the asset class.
The IRS is also not slowing down when it comes to tackling cryptocurrency-related crimes. A court injunction issued in September 2022 allowed the IRS to prosecute those who failed to pay cryptocurrency taxes. John Doe’s summons regarding SFOX broker crypto transaction data. This could be the beginning of other similar orders.
It is clear that, like other authorities in the country, the IRS is stepping up its efforts to control the cryptocurrency market. On the plus side, all of these authorities want cryptographic entities to operate as long as they are within the bounds of the law.
BeInCrypto has reached out to the company or individual involved in the story to get an official statement on the recent developments, but has yet to hear back.