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Global efforts to combat crypto-crime

The Internal Revenue Service (IRS) will send cyber agents to Australia, Colombia, Singapore and Germany to investigate the use of cryptocurrency in tax crimes.

The IRS will assist international law enforcement in investigating tax and financial crimes using crypto assets, decentralized finance, and mixers.

Cyber ​​agents are important in international investigations

According to IRS spokeswoman Carissa Cottrell, agents will take part in a 120-day trial trip from June to September.

If successful, the agents will remain in their respective countries to act as a proxy for a case agent in the ongoing investigations. They will advise case agents in the United States about the feasibility of obtaining certain evidence and assist with cultural and legal considerations.

Currently, the IRS has only one electronic specialist working in The Hague, Netherlands. The agent works with Europol.

Jared Koopman, director of Internet and Forensic Services for the IRS, told CNBC that money seized from criminal activities is sent to hardware wallets set up by agents in charge of enforcement actions. The US Marshals Service and the US General Services Administration then liquidate the assets.

The new regiment will joins Eleven agents located in Mexico, Canada, Colombia, Panama, Barbados, China, Germany, the Netherlands, the United Kingdom, Australia and the United Arab Emirates.

The IRS is focused on tax evasion in 2023

The IRS is using technology developed by blockchain security firm AnChain.ai to scrutinize cryptocurrency tax disclosures and investigate white-collar crime. It is set to receive an $80 billion federal injection for enforcement actions, including cryptocurrency tax evasion.

In September of last year, the IRS issued John Doe’s subpoena to MY Safra Bank, requesting transaction information for a SFOX crypto customer. It sought to compare SFOX clients’ information and other records to determine whether the brokerage’s clients had complied with the disclosure rules.

The new infrastructure law will force crypto brokers to disclose customer identity and transaction activity starting in 2024. Brokers must issue a Form 1099-B to customers starting in 2024. This form will track crypto transactions starting January 1.

Form 1099-B Example | source: Gordon Low

Last month, the IRS opened up for comment new guidance on taxing non-fungible tokens (NFTs).

For a recent Be (In) Crypto Bitcoin (BTC) analysis, click here.

Disclaimer

Adhering to the Trust Project’s guidelines, BeInCrypto is committed to providing unbiased and transparent reporting. This news article aims to provide accurate and timely information. However, readers are advised to independently check the facts and consult with a professional before making any decisions based on this content.

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