London, UK, 7th August 2021, ZEXPRWIRE – The IRS is seizing $1.2 billion in cryptocurrency this fiscal year, and after they are seized, the proceeds from these sales are used to fund the US Treasury’s General Fund.
FinancialCentre broker Christian Ricci details the IRS reports that it has helped them bring in a total of $4.7 billion during the last fiscal year- a new record for cryptocurrency seizures! This is a good example of how government agencies can harness modern technology to generate funding without raising taxes or cutting essential spending services for taxpayers.
The IRS is seizing $1.2 billion in cryptocurrency
According to the IRS, they have seized $1.2 billion worth of cryptocurrency from their cases in the last fiscal year. This figure is an increase of more than 50% from the last year’s $896 million.
A total of 700 investigations into taxpayers hiding assets through crypto has been done so far this year- compared to only 450 in the whole of 2017. The IRS will only be able to continue this level of enforcement if Congress passes a budget that funds them.
Steven T. Miller, the commissioner for the IRS, believes that cryptocurrency cases take significant time and effort to crack. This is why the agency’s criminal investigations unit has assigned more agents to these types of cases.
How the US Treasury uses the proceeds of cryptocurrency seizures
The IRS has been able to seize a total of $4.7 billion in crypto since 2017, which is used to fund the general budget and reduce the federal deficit. A large portion of this money will be returned to taxpayers as refunds or offsets in unpaid taxes.
The IRS has stated that it “believes cryptocurrency users should not be anonymous” and that strong tools are needed to fight tax evasion and fraud with cryptocurrencies.
How Bitcoin is being used illegally for tax fraud by hiding assets
Since the IRS began to crack down on cryptocurrency this year, they have been able to net a total of more than 700 investigations into taxpayers who are trying to hide their assets from them through crypto.
The IRS and state boards that oversee taxation have started forming a coordinated effort to crack down on cryptocurrency fraud.
They are accomplishing this by using the same tactics that they use to uncover tax evaders. The agency has become more efficient in its investigations due to advanced technology and new legislation that has passed in recent years.
How cryptocurrency is being used by people who evade taxes
The IRS says the majority of cryptocurrency seizures have come from people who are trying to “conceal their assets and identity by using Bitcoin.”
This is a form of tax evasion that has become an increasing problem in recent years. The IRS says many investigations into these types of crimes are reliant on other government agencies who do not have jurisdiction, creating a risk that they will not collect all the taxes owed or prosecute suspects for other crimes, including identity theft.
How technology is helping to crack down on tax fraud
The IRS says cryptocurrency seizures have increased because of the new technology they have been using in their investigations. One example is having more agents dedicated to enforcing these types of crimes and performing high-tech data analysis to find patterns and connections between people and other transactions.
How cryptocurrency is helping grow the US economy
An IRS assessment of its technology and enforcement strategies has shown that in the fiscal year 2017, enforcement actions brought a total of $4.7 billion into federal coffers. This is not only helping to pay government salaries, and it will help the US economy grow as that money is used in other areas.
Many of these funds are recovered through debt-collection operations, which can be more efficient when cryptocurrency seizures are combined with a federal audit and/or legal action for unpaid taxes.
How the IRS can enforce cryptocurrency tax laws
The IRS has collected information about specific taxpayers’ use of cryptocurrencies and shared this information with other agencies, making it easier to investigate crimes related to crypto or other national security risks.
Taxpayers should be aware that the agency is also coordinating its enforcement actions with foreign governments to ensure they follow all the rules with Bitcoin and other digital assets.
How can government agencies harness modern technology to generate funding without raising taxes or cutting essential spending services for taxpayers?
The IRS is seizing $1.2 billion in cryptocurrency annually, helping the US Treasury fund the national budget and reduce the federal deficit.
This is all possible through a coordinated effort between multiple government agencies working together to perform investigations on tax evaders that use crypto to hide their assets.
Technology has enabled the IRS to hire more experts to crack down on tax evasion through crypto, helping grow the economy by expanding government funding and improving America’s financial stability.
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