The IRS tracks tax evaders on the blockchain

nRunaway Comment: After the IRS led by Criminal Investigation Bureau lost a few key staff due to budget cuts in 2011, new staff were added again to work with blockchain experts to monitor the blockchain and cryptocurrencies. The IRS also because of the block chain industry companies to join the blockchain tools and techniques have been improved. The monitoring of blockchain activities is even more handy, and as plans for taxing cryptocurrencies come out, IRS should use the blockchain to track cryptocurrencies offshore and implement tax planning.n
nTranslation: Annie_Xun
People often say that there are two definite things in life, namely death and tax payment. It will be more difficult for the holders of American bitcoin who want to evade the latter. Because the Internal Revenue Service (IRS) said it will strengthen its organization to make it easier to track cryptocurrency tax evaders. And a blockchain expert panel has been set up to help them get their share of that benefit.n
IRS ready toolsn
American citizens already understand that IRS has focused on cryptocurrencies. IRS summoned Exchange Coinbase two years ago, and although it was deadlocked, the court finally handed down 15,000 user data to the IRS, the first such action by the IRS. Now that the trend is even more pronounced, the IRS has successfully selected a few experts who have the tools and skills to monitor blockchain activity.n

Don Fortn
IRS director Don Fort revealed during his visit that he has added ten investigators to the Criminal Investigation Division. He may “use the bitcoin and other cryptocurrencies for tax evasion, like using overseas bank accounts.” Bloomberg reported that the Criminal Investigation Division lost several key employees because of the 2011 budget cuts. The recruitment of ten employees will enable the department to regain its strength to join the ranks of blockchain experts.n
Analysis tools in the digital agen
Blockchain tools available to US investigators are more and more sophisticated. Bitfury, for example, works closely with law enforcement agencies to review blockchain activities, gather relevant addresses together and mark suspicious activity, thus being criticized by the cryptocurrency community. Jason Weinstein, a former Justice Department investigator and corporate advisor, said:n
n”Create a trackable public ledger for every bitcoin transaction that takes place so law enforcement can ‘track money’ in ways that cash tracking can not do.”n
nMost countries want citizens to pay cryptocurrency taxes, so the radical stance against Bitcoin at institutions like IRS is typical. U.S. government agencies have long been known for their strong investigative capabilities and their reach abroad. In fact, the IRS recently concluded a successful survey of U.S. assets hidden in Swiss bank accounts. If there is reason to believe that citizens hide cryptocurrencies on an overseas exchange, the IRS will not hesitate to take the same action.n
With regard to tax payment, the United States bitcoin holders can be divided into three categories: reluctant to pay taxes, large-scale investment in the hope that IRS can be left alone, willing to pay taxes and unscrupulous people, even if That means moving to Puerto Rico. Although the IRS does not have enough resources to track every cryptocurrency holder, it is clear that the trend has begun to shift. The days of large-scale tax evasion of cryptocurrencies have been numbered.n

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