IRS Plans to Track Crypto Assets Hidden Using Shell Companies & Smaller Transactions
The Tax Law Offices of David W. Klasing released a press release on 16 June 2022 detailing the IRS report. Taxpayers who try to conceal their crypto revenue are being investigated by the Internal Revenue Service (IRS). In order to accomplish the initiative’s goals, the IRS has established a task force made up of experts in tracking crypto income as well as integrating the civil and criminal divisions of the IRS. Investors often conduct repeated transactions of less than $10,000 to avoid paying taxes, according to a press release. Shell companies are used by some investors to conceal the identity of the company’s owner. The investor can engage in several activities by concealing his or her name and party. Additionally, Hidden Treasure is investigating cloaking blockchain technology, which enables some exchanges to provide trading services to users while obscuring their identities. According to the report,
“Whether the unreported income was intentional, or a mistake is difficult to prove, and the larger the amount of unreported income the less likely the IRS will be to believe your non-compliance was non-willful or unintentional.”
As part of the program, undeclared cryptocurrency profits generated through anonymous transactions would be investigated and tracked. Because investors believe cryptocurrencies can help them remain anonymous, the IRS is now keeping a close eye on them.
